Shanghai Composite and Anacor Pharmaceuticals (ANAC) hit Price Target
After hitting a Price Target the FXI (ishares China Large-Cap) retraces lower. It's one thing for a Momentum stock, particularly one with compounded annual earnings and sales growth to move up very quickly and then blow though an important price target (1.681, 2.618, etc.) on a daily chart, but the Shanghai Composite, represented here by FXI? I'm afraid not. At the very least a sustained pause in upward price action would seem proper. A lot of traders likely had sell orders placed around 52.70.
Speaking of Momentum Plays Anacor Pharmaceuticals (ANAC) touched a Price Target today. This is a momentum play that has historically taken a 1 to 2 week pause after completing a 1.618 measured move on the daily time frame.