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Star Options Trader Charles Hughes Sees the Greatest Bull Market in Stocks in Our Lifetime
My guest on Hedge Fund Radio this week is star options trader, Charles Hughes, of Legacy Publishing LLC. Charles has developed his own highly profitable and disciplined trading strategy which he markets under the names of the Market Volatility Profits Secrets, The Global PowerTrend System, and The Wealth Building Formula.
Chuck’s proprietary indicators are telling him that we have just entered the greatest bull market for stocks in our lifetime. If the market reverts to the mean and makes up for the recent lost decade, then we should earn 22% a year over the next decade. We have a lot of catching up to do.
Chuck’s advisory service offers five different trading strategies which he updates real time at his website. Stop losses and strict risk control insure that 60%-70% of his trades are profitable.
Chuck started out 25 years ago as a “systems trader” and was soon making so much money in the market that he was able to take early retirement and devote himself full time to trading. Through a long period of trial and error, he has refined his system to deliver the eye popping results that he is getting today.
Chuck has a three step process to identify winners. First, he employs 50 and 100 day exponential moving averages to establish medium term price trends. When the 50 day average is over the 100 day you are in an uptrend. As a backup, he looks at the one month versus the 20 month EMA to give a longer term confirmation. Chuck never likes to trade against the trend.
Second, he subjects his picks to a number of other filters. He narrows his focus to stocks making new 52 week highs. These are companies where buying pressure is overwhelming selling, giving them powerful upside momentum. Another is an up sloping “On BalanceVolume Line” to see where the size money is going. Third, is to pick a good entry point. For this he uses “Keltner Channels” to illuminate overbought and oversold price levels. A break below a lower Keltner Channel is a major buy signal with a high probability of success. All of this data is easily available through public websites, like www.stockcharts.com .
To pick a winning options trade, a number of additional hurdles must be breached. Chuck favors putting on deep in-the-money call spreads which have lot of intrinsic value, but minimal time value. Durations are four to six months. Deep in-the-money option spreads can profit if the underlying stock increases in price, stays flat, or falls as much as 20%-30% in price at expiration. The deep in the money call spreads work particularly well in today’s volatile markets.
Chuck is based in the bucolic coastal village of Carmel, California, which enables him to do some world class hiking whenever he likes. He has become one of the top producing options traders in the industry. In 2009, a year in which many traders got trashed, Chuck brought in a stunning 122% return. That approach enabled him to win the International Trading Championship no less than seven times.
Chuck started out life as an Air Force pilot (C-141’s), and later went on to fly for a major US airline. He believes the discipline he learned in the military has been a key to his own personal success in the markets. As a former jarhead pilot who flew in Desert Storm myself, I couldn’t agree more.
To learn more about Chuck Hughes and Legacy Publishing, please visit his website at http://www.chuckhughes.com/ . To listen to my interview with chuck Hughes on Hedge Fund Radio in full, please go to my website by clicking here at http://www.madhedgefundtrader.com/november-18-2010-chuck-hughes.html .
To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out-of-consensus analysis, please visit me at www.madhedgefundtrader.com . There, you will find the conventional wisdom mercilessly flailed and tortured daily, and my last two years of research reports available for free. You can also listen to me on Hedge Fund Radio by clicking on “This Week on Hedge Fund Radio” in the upper right corner of my home page.
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Point well taken, I myself religiously follow the guys who say Nothing, because they never lie. Things always happen for a reason, but not often enough for the way you think.
Watch it with "You people...". I don't see many here drinking the kool-aid fella.
Referring to hedge fundies and their fanboiz, my appy-lolly-goggies.
"Chuck never likes to trade against the trend." - meaning, "Chuck's always confident that he will find a greater fool" and that's what his newsletters are for!
I might as well listen to Cramer who also never trades against the trend.
Yeah, definitely one of those "the trend is your friend", until it's not, kind of deals.
Bull market in nominal terms, but in inflation adjusted money?
Exactly. He may well be right, strictly along his words.
But in real terms he will have lost money, especially compared against commodities including, but not limited to, gold.
Woah,
Now, that's a mighty big "IF" you have got there!
Compare and contrast with the following ZH headline:
Hmmm... Reminds me of the old joke: "Who are you going to believe? Me or your lying eyes?".
Seriously, though, a bull stock market will come back. Eventually. But all the past excesses must be purged out of the system first, and that's going to take time.
Bingo. It's a very big assumption. This piece is just BS.
"all the past excesses must be purged out of the system first, and that's going to take time."
And considering that those excesses are being papered over with trillions of dollars worldwide to prevent them from being purged, it's going to take only as long as it takes for the market to call an end to the BS and _force_ a correction.
junk as always..
##Chuck started out 25 years ago as a “systems trader” and was soon making so much money in the market that he was able to take early retirement and devote himself full time to trading.
lets get it straight... guy made obsene amonunt of money and then retired
and devoted to full time TRADING????????
so how exactly did he make money at first place..? jerking off laying on couch... :))))))))
pure simple BS.. skip it
alx
Please...Nonsense..Yes dow 36k and nasdaq 5k again..that is Bull****..Oops did i say that i meant Bull Market...
Bears always have the most cogent reasoning for their position....However, the government knows there's a lot of pension funds that need this market higher. Bernanke is on the bull's side....I'm not going to fight the Fed....However, Bob Janjuah is the smartist bear I know and I'd sure like to read his current thoughts.
He wants to make us all rich.. how nice of him.
Sell that god damn subscriptions, eh!
Sounds like someone who has got a lot of shares to unload.
I didn't get the memo either...
Exactamundo!
I hate to inform the star trader we have gone from 6600 to 11200 in the last 18 months. That is a damn good bull move. He is nuts thinking we are going further bull from here with all the financial contagion still lurking.
22% ?? lmao!
"we have gone from 6600 to 11200 in the last 18 months"
But we got to 6600 how? The algorithmic trading programs pushed the market to that point, flash crash bitchez.
All signs point upward.
You may want to read up on the Kontratieff Long Wave after which your view of up, up, and away should change a bit.
http://kondratieffwinter.com/blog/k-wave/kondratieff-summary
Edit: I provided a link for "junkers" who would like to educate themselves on the possibility of something other than hyper-inflation which seemingly most everyone here has concluded is a certainty.
Right. Afterall, what 'human' investor would have sold on the news that the biggest institutions on Wall Street were insolvent and collapsing?
Not.
He is also very selective in his measurement of 'the mean'. Taking post Bretton Woods inflationary expansion, which is by definition unsustainable, and calling that 'the mean' is more than a little intellectually dishonest.
If the term 'intellect' can even be fairly applied.
His explanation of the fast line/slow line analysis of the Moving average is embarrassingly "Junior Varsity". He sounds like the kind of non-sophisticated trader that makes a tasty lunch for the HFT boys.
bravo popo, took 2 seconds to expose weakness
His strengths are in negotiating cheap rates to hold how-to seminars at the Armada Room at the Holiday Inn.
Bingo
Las Vegas used to comp a private jet and penthouse honeys with all the trimmings for anyone with enough cash and a system
Methinks someone is getting their bs rocks off again, self-proclaimed CIA Conferee, Desert Storm Pilot, Lunch Promoter, Morgan Stanley Hero, Outstanding Investment Adviser, DNC Political Operative or no
Guaranteeing $100,000 over the next year, Stellar profits good times or bad, tripling money in thirty days or less while risking nothing rhymes with Made-off
http://www.chuckhugheswca.com/
http://www.chuckhughesonline.com/
http://www.tradewins.com/Images_Custom/PDF/MVP.pdf
Anyone who implies on his website selling naked shorts on puts and calls is a low risk strategy is either Warren Buffett or a con artist
Tried looking up International Trading Championship Charles Hughes as claimed and found nada zip zilch except MHFT hypes and Chuck Hughes obits
A Chuck Hughes was on various Robbins World Cup Trading Champion lists four, not 7 times as claimed
http://www.ideamarketers.com/?articleid=1022501
http://www.robbinstrading.com/worldcup/standings.asp
We all know what happened after Bob Prechter won the US Trading Championship with a +444.44% record in 1984 that still stands
http://www.elliottwave.com/freeupdates/archives/2010/07/01/-Market-Manip...
Does anyone still believe MHFT predictions after all his fraud hype?
Might as well trade Cramer hot tips on GM and Gold
Why is ZH posting disinfo - disentertainment?
PS The greatest bull market of our time was 1982 to 2000 and unlikely to repeat any time soon as Bill and other students of Jubilee K Wave Debt Default Deflation noted here
Over and out
Excellent work ATG.
>>>Why is ZH posting disinfo - disentertainment?<<<
Could be. Simply trying to get a rise out of us?
It doesn't explain some of the lame-assed copy/paste contributions from some marginal bloggers that get featured here.
Blogs are alot like certain body parts. Everybody has one; everybody thinks that theirs doesn't stink.
They are so very wrong.
This post begs the question:
How does one get to be a ZH Contributor?
I've read some ridiculous copy/paste job posts from people who can't get hardly any traffic to their own blogs. They "contribute" here and get many, many replies, kudos etc...
I've read some thoughtful analysis and synthesis.
And then, well, there's this drivel above.
So, what's the answer?
Anybody?