For the second time in a week, a sharp drop in Chinese shares have shaken US markets. Today Wall Street decided that that is old news, and we've seen some buyers step in. China has had a strong surge off the bottom in its markets, so its only natural that there will be some bumps along the way. As China gains more importance in the financial realm, we will continue to become more affected by what happens in their markets.
With stocks slowing up a bit, I've started to get closer to buying some shares. I still expect a decent sized to correction, and plan to use that to do a healthy amount of buying. Many voices that I respect have been calling for this (or something like it to happen). Paul Tudor Jones recently said stocks are in a bear-market rally. David Einhorn recently sold some long positions and added a large position in S&P puts (could just be a trade there though). And there have been a handful of others.
I do agree with what Todd Sullivan has been talking about with regard to active value investing. This theory comes from Vitaliy Katsenelson, and his book Active Value Investing. There's a lot of good info in his writings, and I urge you to take a look.