Just Like Old Times For Net Stocks

Internet stocks surged another 5% on Thursday for a remarkable 3-day gain of 16%.

The ISDEX gained 31 to 652, and the Nasdaq rose 95 to 3429. The S&P 500 added 7 to 1428, but the Dow slipped 18 to 10,880. Volume declined to 1.14 billion shares on the NYSE, but rose to 2.21 billion shares on the Nasdaq. Advancers led by 17 to 11 on the NYSE and 25 to 14 on the Nasdaq. October unemployment data is due out tomorrow morning. For earnings reports, visit our earnings calendar and reported earnings. For after hours quotes and news, visit our after hours trading site.

After the close, Priceline traded down after the company matched reduced estimates but announced the departure of CFO Heidi Miller. Qualcomm soared 10% after beating estimates by a penny.

During the day, Liberate was the latest beaten-down Net name to lead the ISDEX higher, soaring 3 7/8 to 22 1/2. Internet Capital Group rose 2 15/16 to 18 7/16 on comments from CS First Boston that five of ICGE's portfolio firms could go public.

Saudi Arabia Prince Alwaleed bin Talal, undeterred by his failed investment in Priceline.com in the mid-20s, announced that he will double his investment in America Online to $2 billion. AOL rose 1.95 to 53.95.

PSINet imploded 3 25/32 to 2 15/16 after the company warned that it would miss 4th-quarter estimates, and announced that president and CEO Harold Willis will step down.

Foundry Networks rose 6 1/2 to 82 3/8 on a Lehman Brothers Buy rating.

Genuity added 1/16 to 6 1/4 after beating estimates by 3 cents with a 24-cent loss. NetZero tacked on 1/16 to 1 15/16 after beating estimates by 3 cents with a 22-cent loss. Looksmart , up 1 1/4 to 9 21/32, beat estimates by a nickel with a 7-cent loss.

BroadVision rose 2 1/16 to 33 7/16 on an alliance with IBM .

InterTrust added 11/16 to 10 11/16 on a Wall Street Journal story that said the company could benefit from the alliance between Napster and Bertelsmann to encode music files to be sold through subscriptions.

Handspring surged 12 15/16 to 84 3/4 on a CIBC Strong Buy rating and $90 price target.

Internet infrastructure leaders rebounded. Cisco Systems , which reports earnings Nov. 6, rose 3 7/8 to 56. JDS Uniphase gained 2 5/16 to 80 7/8, and Juniper Networks rose 11 7/8 to 195 1/4.

Red Hat added 2 1/2 to 17 13/16, continuing to gain on comments from a Microsoft official that Linux on the PC represents the greatest threat to the software giant. Also, IBM announced that it will install 15,000 Linux servers in Japan.

Some technical comments on the market: Note: We are now including charts in the technical market commentary. If you can't get the charts via the e-mail newsletter version, try this link: http://www.afterhourstrading.com/column.html

Special report: For a free introduction to technical chart patterns and an overview of this year's action in the stock market, visit http://www.internetstockreport.com/guest/article/0,1785,2571_500051,00.html.

We're already seeing signs in this rally that we don't like. We'll focus today on the large-cap Nasdaq 100. The index filled a gap at 3326 today that had