Momentum in Internet, Telecom Sectors

Nick Perry (Schaeffer's Investment Research) submits: Last week we saw that most groups remained in rally mode with the Internet HOLDRS Trust (HHH) leading the charge. This week we find more of the same - at least in spirit:

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Just over two-thirds of my list gained ground this week, but most moves were fairly muted. Only three funds - the iShares DJ U.S. Telecomm (IYZ) , Telecom HOLDRS Trust (TTH), and Internet HOLDRS Trust (HHH) - were able to rally more than two percent. On the flip side we find that four funds - the US Oil Fund (USO) , iShares C&S Realty Majors (ICF) , PowerShares Retail (PMR) , and Wilshire REIT Fund (RWR) - lost that amount, or more.

The star performer, for the second week in a row, was helped by takeover chatter. The heaviest weighted stock in the HHH is Yahoo! (YHOO) , which surged Friday on rumors that Microsoft (MSFT) may look to buy the Internet-search firm.

Index performance this week:

Index performance year to date:

Charts: Google Finance