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Readers know my fondness for Chinese stocks. They can surprise and delight to the upside and surprise and dismay to the downside. Here are two stocks that I've mentioned in this space previously: WSP Holdings (NYSE:WH) and China Natural Gas (OTC:CHNG). (Click on all images to make larger.)

First, let's take a look at a chart of WH, a Chinese tubular steel manufacturer that sells to the oil and gas industry (and has been recently hit by tariffs and the mini implosion of E&P stocks).

This stock has been in a steady decline. No, I did not have a stop loss on it. I seldom put stop losses on these speculative stocks due to the large shakeouts that occur. Hold your admonitions. That is my decision based on my consideration of my risks (and I size my trade accordingly)...your risks can and will vary, so make your own considered judgment. WH has had a remarkable rise on remarkable volume over these last few days--rising 50% from 09/03 through 09/08. It has pulled back in a bit. I'm not adding, and I continue to hold my position.

Second, let's look at CHNG, a Chinese compressed natural gas concern.

CHNG was taken to the woodshed and soundly beaten for not disclosing some debt. I figured that the stock had priced in the bad news (which to my eye and ear was more of a qualitative issue (trust) v. a quantitative issue. I held this in two accounts. I closed one position for a nice profit. The stock has a 13% short interest, so that's a little bear kindling when news surprises to the upside. There is much to be cautious about in both the fundamentals and the technicals; buying at these extended levels is risky.

On a different note, I literally stumbled across the the following chart of Cubist Pharmaceuticals (NASDAQ:CBST) to share. I do not have a position. It is setting up for a volatility squeeze. This stock is fixin' to get ready to go someplace.

Source: Two Chinese Lazarus Stocks and a Note About a Potential Pharmaceuticals Mover