Let the trend continue (for just a bit longer)
You pressed the like button yesterday. VIX went down. Do it again. See what tmr holds.
Note: This is a very brief note to our community given that we are not yet out of the woods. For more frequent, insightful, and tactical strategy on markets and career guidance, let me help you inside our investment community where our May 2nd Half Investment Research is now published.
Dear Public Investment Community,
On May 9th, I issued an email to my public list discussing the potential of a counter-trend rally when SPX was below 4000.
May 9th Email: For me, I believe a relief rally in markets could be arriving in the coming days and weeks, and I discuss specific levels that I’m looking at inside my investment community along with specific themes that I’m strategically adding exposure to while ensuring risk levels are appropriate.
Depending on whether you hold just the index or individual stocks, you most likely recovered a bit along with the rest of the market. I’m rooting for you.
I hope you didn’t sell (yet) because I literally suggested that you hang tight (for now).
But here’s the problem - many people sold a substantial amount of their holdings during this period of time. I know this because I continue to get many messages every day asking me “Larry, should I sell now before I get worse.”
“LARRY, F THIS - I’M OUT” - Instagram Friend
“can’t take this anymore - have to preserve what I have left” - Youtube Friend
“ugh, this market is killing me. Selling.” - Twitter Friend
And I’m thinking, do you even read my emails? What on earth? 🌍
Before I continue, may I remind you that I cannot tell you to buy or sell. That’s what financial advisors are for. I provide investment strategy and research insights. I upgrade your knowledge as an equity analyst and teach you how to think for yourself.
They’re completely different roles - even though they seem similar.
If you follow markets closely, you might notice that the SPX has rallied about 6% off the lows, yet some of the FAAMG stocks have yet to materially recover.
In addition, some of the high-valuation names continue to still struggle relative to QQQ or SPY. I firmly believe we are entering an environment where active management will likely add alpha relative to passive indexing (now dangerous IMO)
If you are invested or interested in the following themes, I can provide additional insights to help you have a complete picture of your risk/reward over the coming days, weeks, and months.
Large Cap Chinese Tech (Top holdings inside KWEB)
U.S. Technology / FAAMG
Semiconductors
Selective Software Companies
Consumer Discretionary / Staples
Directional opinion on SPY/QQQ/DIA/KWEB
These are my coverage universe themes where I provide a lot of guidance inside my community. I have an opinion on where they are in the current cycle relative to the secular trend.
Unfortunately, I cannot comment on the following themes:
Alt Coins
Shit Coins
Penny Stocks
Micro Caps
Utility Stocks
Energy Stocks
Healthcare / Pharma Stocks (Besides JNJ / UNH)
If you are primarily invested in those areas, I probably can’t help you.
Also, there’s a ton of fake accounts out there pretending to be me on Instagram. I will not DM you to talk about “crypto” opportunities.
The nerve of these imposters. I already don’t have a favorable opinion on shitcoins, and these fake accounts use variations of my Instagram account name to talk about the same crap to my followers.
Be careful out there. My one and only IG account is @larrycheungcfa
Cool Stuff: Our friends at Webull have a new offer to celebrate their 4-year anniversary.
I have a sponsorship & affiliate relationship with Webull, and I personally use them as an investing platform, so wanted to pass this along.
Here’s what they’re doing to celebrate:
For new users, they’re giving out 6 Free Stocks valued up to $12,600 - here’s how it’s distributed:
Get 2 free stocks each valued between $3-$300 when you open account with Webull.
Get 4 free stocks each valued between $7-3000 when you fund any amount with Webull.
Looks like you get 2 free stocks for just making an account with NO deposit. And another 4 more when you fund a new account with $1. There’s no cost to you, whatsoever.
If you want to take advantage of their offer (and you’ve never used them before), here’s my Webull link: https://a.webull.com/i/LarryCheungCFA
If I see any good offers out there in the market, and I feel you’d benefit, I’ll pass them along. We both win. 😊
That’ll do for this short update.
If you’re looking to truly understand the investing environment we’re in, and want to support my research/work, let me help you inside my community where I provide macro and equity research as well as career strategy advice. I’m on a mission to help people as many people as I can - hardworking, highly intellectual people like yourselves.
❤️ this email if you enjoyed the read. And see you in my next Youtube Video.
Until then, follow me on Instagram for some VISUAL commentary.
Your Investment Strategist,
Larry