Stocks quoted in this article:
Job cuts rose 19 percent in December in the Internet sector as the companies continued to suffer. Salon.com (SALN- 2-15/16) cut 20 percent from their staff, Ask Jeeves (ASKJ- 11/16) cut 25 percent, and Sonic Foundry (SOFO- 1-13/16) cut 40 percent of their personnel.
The CBOE Internet Index (.INX- 196.66) continues to trade well-below its 10-month and 20-month moving averages. Trading is currently at levels not seen in more than two years.
Investors remain blissfully optimistic about the sector as the Schaeffer's Open Interest put/call ratio (SOIR) listlessly lingers at a modest 0.46. This reading is lower than all but a handful of such readings over the past year. Within the sector can be found securities like CMGI (CMGI- 6-1/8 ) and At Home Corp (ATHM- 5) that have more exuberant ratios at or approaching yearly lows.