Loading Up the Boat With China Stocks

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 |  About: China Gerui Advanced Materials Group Limited (CHOP)
by: Jason Cimpl

The market gave back some gains from Monday's highly bullish session. Volume really picked up across the board today. At this point, the bulls have nothing to worry about however. The selling was not broad based and was congregated around the service and energy sectors.

The weakness in oil Wednesday does have me concerned that more selling could be around the corner. But I'll believe it when I see it.

The bears have done nothing over the past seven months and I do not see why Thursday would begin a sizable sell off. There was also some trepidation in the Russell and should that deficiency remain, the market could be vulnerable to a more prolonged decline.

Wednesday's selling did not hamper our strategy however. Despite the selling, I was loading up the boat with stocks from China. I went long shares of China Gerui Advanced Materials (Nasdaq: CHOP), my second favorite stock.

Our portfolio is exclusively long once again. While I contend that a bearish turn approaches, we have not witnessed any truly strong selling in months and traders must stay with the optimistic trend.