Thursday Analysis:

Dow:
The dow has still stayed below the neckline so the h&S pattern is still intact. Again it looks like we should finish down for the week and should finish below 12,500.

Short:
Everybody has been pumping up AMX as it is the majority player in Latin America but from a technical analysis perspective it looks like they may be taking a bit of a break. Here's the chart:
As can be seen they did form an inverted H&S pattern and then broke-out on higher volume but here is the thing they broke the neckline and whenever that happens the pattern is suspect. Also as can be seen the OBV has been trending lower since Februrary and the RSI since April. Should get back down to about 56.00

Long: HAL, VPHM

HAL: First again lets look at HAL: as I said in yesterday's post HAL had formed an inverted H&S and everything looked good but there was that huge resistance barrier at 42. Well HAL broke it yesterday but not on that great of volume and today is up another 2% as I post this. Look for HAL to come down from these highs to test the 42 line and buy here at this opportunity.

VPHM: Has been a stock I've followed now for several years since their run in with the FDA and the FDA wanting to allow generics to come to market sooner which subsequently dropped their stock a good 50% in a day and since then has been languishing in the single digits after being in the 20's and teens. Here's the chart and why I like it now:

So on first glance we see that there is a lot of resistance at 10.00 which is obviously a big round number. But what we see from the chart is that an ascending triangle has been forming since August. Also the other thing confirming the triangle is that the volume has been dropping ever since the start of the Triangle in August which is a sign that a Triangle has formed. Furthermore, we see on this weekly chart that the RSI has been increasing since the big drop and has just passed over the 50 mark. Also, the MACD is just about to go positive and has shown positive divergences since August. Finally as can be noticed is that the ADX has finally crossed over and is not to be trending which is a good thing since the last trend was a downtrend. There is one bad thing about the chart the 10 week moving average is right at 9.00 and should provide support but the 50 week ma is at 10.50 right now and will bring added resistance at 10.50 so if it does break out at 10 it might be in a very small trading range for a month or 2 until it either breaks the 50 week MA or breaks the support at 10.00.

From the looks of things it looks as if VPHM will be breaking out sometime this month there are a few options for this type of play:

A: Buy on weakness near the lows of 9.00 and ride it up to the resistance at 10.

B: Buy on weakness near the lows of 9.00 and wait it out and see if it will pass the resistance at 10.

C: Wait until it shows a positive break-out with increasing volume and then wait for the pullback to test the new line of support at 10.00 and then buy there and ride it up.