Fortunes will be made and lost this week: Be the Chess Team in Black Below, and not the Team in White.
Press the like ❤️ button if you are READY for this week: July FOMC, Apple Earnings, AND MSFT Earnings. An epic research piece released to my public friends here for 24 hours only. Read immediately.
What could your opponent do if they represented the White Chess team? Nothing. It’s near checkmate. A Black Knight move to C4 seals the deal.
Time-Sensitive Note: For 24 hours only (from Noon 12pm EST today to Noon 12pm EST tomorrow), I’m going to make my recent Patreon Investment Research post issued on Thursday, July 21st (before the violent tech selloff on Friday) public for my email readers to read here. After 24 hours, I will make this post Private again. All the strategic actionable strategy in this Post has already been used up, but again, I am committed to showing my public friends here what I can do for them.
If you vibe with my research style, let me be your Investment Strategist. If you are serious about investing, read this research post that I issued on Thursday, July 21st right now. Share this email to friends and family who you know care about markets.
As you can see from my constant sharing of exclusive work, I am in this game long-term to help you. Inside my Community, you will witness my character as I approach helping my Community.
One of humility & gratitude, one of a beginner’s mindset, and one of a constant and strong crave to help our Community to succeed at ALL costs.
Dear YT Friends & Public Investment Community,
In this image above, we have the final moves in a Grandmaster chess match (link to YT Video) where 16 year old Rameshbabu Praggnanandhaa (in Black pieces above) was the first youngest player to defeat Grandmaster Magnus Carlsen (in White pieces above).
Experienced chess players could see in this image that the White Queen has been distanced from its King. The White Queen is surrounded by unhelpful pieces in this setup, and so is the White King. The white chess pieces have lost much of the board, and should the Black Horse (E3) move to the spot C4 on the board, it will be checkmate.
In Chess, it has been reported that the best players (The Grandmasters or GMs) can often look out to 8 or more moves ahead, depending on the setup.
By developing mental models to plan for various scenarios, the GMs can play a move more calmly when it’s their turn in a time-restricted environment.
In markets, the way we have been brought up and the way the news flow has been designed, we are wired to heavily form our opinion based on a certain day’s headlines. The news does a compelling job at preventing us from thinking long-term, or even the next several moves ahead.
In other words, the market is engineered so that retail investors think only one step at a time, and therefore develop no true edge.
Case in point, this past week’s market action.
Monday-Thursday: a vicious bear market rally where the indexes were able to reclaim “key resistance levels” like S&P 500 at 4000 or QQQ at 300. And sprinkled on top of these key resistance levels is compelling language such as “Traders bet on bottom as they evaluate earnings” (CNBC Headline in RED on Wed-Thurs). Attractive right?
Friday: Snapchat throws cold water on the rally, and now investors wonder whether the rally can continue. We saw a violent reversal in all U.S. leadership categories like FAAMG and Semis. People now enter the weekend afraid of what comes next.
Market-makers (the big Investment Banks) know how you are feeling throughout the trading sessions. They can see your orders. They can see your buys, your limits, and your stop-losses. They can see your sells.
After all, they provide liquidity to the market through your orders.
They can detect your euphoria, and they can sense your fear.
And what they know is this: most people have no plan, no strategy.
This is why volatile days are exceptionally profitable for banks where they profit off the bid-ask spread when retail investors transact more.
More fearful headlines/euphoric headlines = more trading volume = more profits for the Market Makers.
Forming a plan, knowing thyself, and making sure you follow through is one of the best ways to re-stack the edge in your favor to avoid playing into their hands.
The same way GMs think ahead is the same way you should plan your strategy well ahead of time, so that you are psychologically and mentally prepared to transact with conviction and confidence.
If even Grandmasters must plan their next move, shouldn’t we?
I know many of my friends from Youtube, Twitter, and my Email List here are Fundamental & Macro equity investors.
One of the biggest open secrets that I’ve publicly shared with my audience is that I spend a lot of time reading earnings transcripts after companies post their outcomes. The whole Q&A. The entire discussion with the Sell-Side.
You know this because in all my videos, I typically share screenshots of the earnings call transcript itself if I’m talking about a specific company.
This is where I get my edge (among one of my avenues).
Is it time consuming? Absolutely.
Is it the only thing you should be doing? Of course not. But it’s a powerful start.
For most people, reading earnings call transcripts is not really feasible because of time constraints.
But I do it so that I can stack the edge in favor for my Community.
Reading earnings transcripts is the equivalent of planning out several moves in advance in Chess. It allows you to know your landscape, and it allows you to separate noise from true signals. It allows you to understand how many pieces you still have on the Chess board, and how many pieces have been lost.
I will continue to do everything I can to help our Community not get rug-pulled, which has unfortunately happened to retail investors many, many times this year.
Most of all, I will show you what it means to have a Strategist with a powerful work ethic, outstanding research, and intense passion for the Game on your side.
I live and breathe markets, and if you share a passion for patient long-term strategic investing and enjoy simple yet thoughtful research, I am your biggest advocate.
This week is July FOMC, AAPL Earnings, and Microsoft Earnings all at the same time. This week may not be kind to the Unprepared, the people who overreact, or the people who don’t want to dig deeper.
Like I said in a previous email, I’m here to make as many Global Friends as possible (North America/Europe/Asia-Pacific). And my I’ve purposely designed our Community to be accessible to all.
I’m going to (and objectively speaking, already have) add significant value at a degree that is unheard of at this price point.
One of the most common questions I get asked lately is this: “why is the pricing so low compared to what you offer? This is unbelievable value.”
The answer is simple, I want YOU to be in the position where you can put E3 Black Knight in the spot C4 in the chess board below. (And not the other way around)
That would represent a Checkmate for our opponents.
When this bear market fully flushes out people who got lucky with their fortunes from stimulus era 2020-2021, a new wave of investors (hopefully you) will step in and claim their shares.
Game. Set. Match.
Ready? Me too.
That’ll do for this brief update.
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Best Investment Platform For HK-Listed Shares for Chinese Internet Companies: Interactive Brokers
❤️ this email if you enjoyed the read. And see you in my next Youtube Video.
Your Investment Strategist,
Larry
Important note: My public letters are not financial advice. You must do your own research. They are designed for educational purposes only.