We have seen some bounce back in commodity stocks. This was mainly due to the following reasons :
1) Fed delaying the increase in interest rates
2) Short covering on commodity stocks
3) Bottom fishing by investors
4)China GDP numbers come a shade better than expected
However this looks like a perfect value trap for the investors . To start with the Risk On sentiments because of the Fed inaction will not last beyond Q1. More than 80 pct of market participates believe that Fed will have to raise interest rates latest by March 2016 . The continuing inaction by Fed is eroding market confidence in US recovery and Fed's firmness to act.
China's GDP has to be taken with a pinch of salt. Also it confirms continued softening in Chinese economy . Will China fall into a recession ?
In any case its best to buy commodity stocks near the peak as the slump in commodities may continue for sometime.
Thus good time to book profits and move into sectors that are less dependent on China. IT stocks like Infosys , Wipro looks good for the long term investors.