The China stock market has gotten too hot, strategist Brian Reynolds said Friday. In fact, it's gotten so overheated that the China bull is hitting the sell button.
"There's been a lesson of this six-year bull market; it's that when something gets too hot, when it gets oversold, you have to be a near-term seller of it," the chief market strategist of New Albion Partners said in an interview with CNBC's "Closing Bell."
That's because there are so many short sellers looking to drive prices down, he explained.
"They'll gravitate to the stuff that's done really, really well."
The China stock market neared correction territory Friday, with the Shanghai composite index tumbling more than 6 percent.
While Reynolds is bullish on China from a multiyear perspective since its bull market is a financially engineered one, he'd rather be in the U.S. right now. The U.S. bull market also has been propped up by its central bank's monetary policy, but the S&P 500 is flat this year while China went up 40 percent in a month, he pointed out.
"It will probably take a two or three months of downside pressure to take off the overbought condition that China is in and then maybe we can start building a bull case for China," said Reynolds.
Meanwhile, he thinks that a resolution on Greece's debt problems will lead to more stock buybacks and mergers in the U.S., and that will usher in a "significant increase in share prices."
—CNBC's Linda Sittenfeld contributed to this report.