Trading in Bear Markets

The intermediate and long-term trend is still bullish for US equities and we are still maintaining our long stock/ETF, call option and call option spread positions.

However, Chuck’s trend following systems work just as well in bear markets by trading bearish ETFs, put options and bearish put option spreads. In the last bear market the trend following systems turned bearish and we profited from bearish option and ETF positions.

The option income strategies produced $598,521.20 in cash payouts during the severe bear market in 2008. In this video learn how to profit in the next bear market using Chuck’s trend following systems. Actual bearish trade examples in 2008 will be displayed.

 Prime Trade Select

A trend following system allows us to 'trade with the trend' instead of trying to predict the future price direction of a stock. Using a system to select trades helps us avoid emotional decision making which can quickly derail a trading program and instead gives us the discipline needed to be successful option traders.

If the trend following system can identify a stock moving up in price, we can profit from purchasing call options. This allows us to profit from the tremendous leverage that options provide. Learn how the three-step trade selection process allows us to identify stocks and options with the best profit potential and profit in any type of market condition.

Actual option trades will be used to demonstrate the ability of the three-step trade selection process to select profitable option trades.

The trend following system is used to take both bullish and bearish trades. When the system is on a 'buy' signal we buy stocks/ETFs and call options and when the system is on a 'sell' signal we buy put options. This allows us to profit in both bull and bear markets.

The trend following system is easy to download from the internet and gives us an 'instant picture' as to whether we should be taking long or short positions.

 Trade with the Trend

A stock’s price movement reflects all the known information about a company so we let a stock’s price movement determine when we should buy and sell.

A trend following system allows us to ‘trade with the trend’ instead of trying to predict the future price direction of a stock. Using a system to select trades helps us avoid emotional decision making which can quickly derail a trading program and instead gives us the discipline needed to be successful option traders.

Our trend following system is used to take both bullish and bearish trades. When the system is on a ‘buy’ signal we buy stocks and ETFs and when the system is on a ‘sell’ signal we buy bearish ETFs. This allows us to profit in both bull and bear markets.

Monthly Trend Following System

The video below will look at using monthly price data to generate buy and sell signals for stocks and options. A stock’s price movement reflects all the known information about a company so we let a stock’s price movement determine when we should buy and sell.

This monthly trend following system is used to take both bullish and bearish trades. When the monthly trend following system is on a ‘buy’ signal we buy stocks and call options and when the system is on a ‘sell’ signal we buy bearish ETFs and put options. This allows us to profit in both bull and bear markets.

The monthly trend following system has been performing well during the current market conditions as well as the two severe bear markets in 2008 and 2001 when we were heavily short most global equity markets.

A trend following system allows us to ‘trade with the trend’ instead of trying to predict the future price direction of a stock. Using a system to select trades helps us avoid emotional decision making which can quickly derail an investing program.

The monthly trend following system is easy to download from the internet and gives us an ‘instant picture’ as to whether we should be taking long or short positions.

The EMA System

The EMA system is a trend following system that allows us to ‘trade with the trend’ instead of trying to predict the future price direction of a stock. The EMA system is easy to download from the internet and gives us an ‘instant picture’ as to whether we should be taking long or short positions.

When the EMA system is on a ‘buy’ signal we buy stocks and ETFs and when the system is on a ‘sell’ signal we buy bearish ETFs.

The EMA system performed well during the 2002 and 2008 bear markets when we were heavily short equity ETFs

The brokerage account Profit Loss Report below shows that there are $154,105.82 in stock and ETF open trade profits using the EMA system. There are twelve profitable trades and two losing trades resulting in 85% accuracy.

$154,105.82 Stock and ETF Open Trade Profits

Identify Stocks and Options with the Best Profit Potential

This week let's explore a simple trend following system for trading stocks and options. The goal of the trend following system is to quantitatively measure the buying and selling pressure of a stock. This enables us to follow the trend instead of trying to predict the trend.

Options are derivatives that derive their value from the price of the underlying stock. Option profits are determined by the price movement of the underlying stock.

If you can identify a stock moving up in price, you can profit from purchasing call options. Conversely, if you can identify a stock moving down in price you can profit from purchasing put options.

Chuck has been using Trend Following successfully for more than 30 years. His trend following system worked will during the 2002 and 2008 bear markets when he profited from short positions. Copies of brokerage account Profit/Loss reports show that Chuck has currently over $1.7 million in open trade profits using the Trend Following system.

In this video we will learn how to identify stocks and options with the best profit potential and select a low risk entry point for our trades.

25 Years of Seasonal Analyses

From Chuck's "Guaranteed Real Income Program" we will look at 25 years of seasonal analysis to explain where trends lie and how to take advantage of them. We will also explore how you can use seasonality for the indexes.

Using the Major Trend System to Trade Options

In this video we will explore using the Major Trend System to generate buy and sell signals for ETF options. The Major Trend System is used to take both bullish and bearish option trades in global currency, commodity and equity markets.

When the Major Trend System is on a 'buy' signal we buy call options and when the system is on a 'sell' signal we buy put options.

The goal of the Major Trend System is to identify major price trends in a broadly diversified portfolio of global markets. This trend identification in diverse global markets has resulted in a consistent flow of trading profits from both long and short trades in bull and bear markets.

The Major Trend System is a trend following system that allows us to 'trade with the trend' instead of trying to predict the future price direction of a market. The Major Trend System is easy to download from the Internet and gives us an 'instant picture' as to whether we should be taking long or short ETF option positions.

Real time trading profits presented in this video demonstrate how the Major Trend System has profited training ETF options is both bull and bear markets.

The Global PowerTrend System

In this video we will explore trading ETFs using the Global PowerTrend System (GPS). GPS utilizes a trend following system called the Major Trend System to generate buy and sell signals for ETFs and ETF options. The Major Trend System takes bullish and bearish trades in global currency, commodity and equity markets.

The goal of the Major Trend System is to identify major price trends in a broadly diversified portfolio of global markets. This trend identification in diverse global markets has resulted in a consistent flow of trading profits from both long and short trades in bull and bear markets.

The Major Trend System is a trend following system that allows us to ‘trade with the trend’ instead of trying to predict the future price direction of a market.

Most investment programs recommend diversifying your portfolio across different industry groups. One of the great advantages of the Major Trend System is that it allows you to also diversify your portfolio by asset class which further reduces risk and can result in higher returns. The ability of the Major Trend System to take both long and short trades also increases the diversity and profit opportunities of the system.

Real time trading profits presented in this video demonstrate how the Major Trend System has profited in both bull and bear markets.

Quantitatively Measuring a Stock's Trend

In this video we will explore the Prime Trade Select stock selection process. Prime Trade Select allows us to quantitatively measure a stocks trend, confirm the trend and select a low risk entry point.

Prime Trade Select has produced $1.542 million in actual stock profits over the past four years during very difficult market conditions. And Prime Trade Select has contributed to Chuck Hughes current open trade profits of $436,037.79 with an average return of 60.5%. Discover how Prime Trade Select can lead you to stocks with the best potential.

PowerTrend Stock Strategy

In this video, we will explore a simple trend following system used to trade stocks and call options. It only takes 10 minutes per month to implement this strategy. Despite its simplicity, this strategy has produced a total return of 727% over the last ten years investing in a sample portfolio of stocks in six different industries.

PowerTrend Asset Allocation

In this video, we will explore a unique strategy that uses a simple technical indicator to buy and sell ETF's in different asset classes. It only takes 10 minutes per month to implement this strategy. Despite its simplicity this strategy has not had a losing year since 1973.

PowerTrend Asset Allocation System Profit Results

• $10,000 Grows to $618,747= 6,087% Return
• Average Annual Return of 152% before commissions
• Profitable during 3 severe bear markets when the S&P lost more than 50% of its value>
• Winning trades are nine times larger than losing trades keeping risk to a minimum

Trend Trading Videos - Trend Following

Chuck Hughes has been successfully using his simple trend trading strategy following systems to trade stocks and options for more than 27 years. Currently there are many stocks on a trend following system 'buy' signal. In this video we will learn trend confirmation indicators that allow us to select stocks and options with the best profit potential.

This trade selection process has helped produce a $215,662.83 real time profit in Chuck’s stock portfolio as shown by his brokerage account Profit/Loss statement below.

Trend Trading

When Chuck Hughes is considering trading short, he only will take a short position in a stock or ETF if the Major Trend System for that stock or ETF is on a 'sell' signal. Taking short positions in the direction of the major trend helps prevent 'whipsaw' trades when counter-trend rallies occur. Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades.

Trend Trade - Trade in the Direction of the Major Trend

• The 1-Month/20-Month EMA Major Trend System can be used as a filter that only allows trades in the direction of the major trend
• This helps prevent ‘whipsaw’ trades when counter-trend rallies occur
• Preventing whipsaw trades can increase profits, reduce losses and increase the percentage of winning trades
• Following a major trend can produce big results, especially when you look for the trade signals to get out.