The best investment over the past 10 years has been gold.  The good news is you don’t have to buy gold bullion to play.  There is an ETF (GLD) that tracks the price of gold.  How good of an investment has it been?  If you would have had all your money in the S&P 500 or equivalent over the past 10 years, you wouldn’t have made ANY money. In fact, you would have had a small loss.  However, an investment in gold yielded 400% during the same time period!

Gold moves opposite the dollar (ETF: UUP) as an inflation hedge.  UUP looks like it’s about to find some support after a nosedive since late August. And, although GLD will remain a wonderful long-term investment, it looks ready for a multi-week pullback.  Today’s chart is the weekly chart of GLD (so each candlestick represents one week).

COMPANY INVEST TECHNICAL ANALYSIS

“A” is the impressive uptrend the price has been in throughout 2010.  However, look at the MACD during the same time. The price keeps making new highs, while the MACD cannot. Looks like a powerful triple divergence setting up on the MACD.

“B” is the 50 day moving average. As you can see, GLD is trading WAY above both the 50 and 200, making it a very, very bullish investment.  The 13 day EMA (green line) is a good pullback target.  I would expect GLD to settle down to 120-121 (and possibly 114) over the next 2-4 weeks before another thrust up.

Looking at “C,” you can see that the buying volume has decreased for the past 3 weeks while the price kept going up.  This means the buyers are drying up for now and a pullback is imminent.

“D” is the downslope of the MACD and flat line of the histogram diverging with the price.

“E” is the 14-week RSI, which is a momentum indicator.  The “overbought” level of 70 has been breached. The last 3 times this happened, a selloff followed.

Company Invest Bottom Line: While GLD is a great investment, take some profits and look to load up again at the 120 level (or even 114). Another play is DZZ, a “short” gold ETF.  i.e., when the GLD goes down, DZZ goes up.

Alcoa Aluminum Daily Chart

Alcoa Aluminum has enjoyed a nice run from $9.92 per share on 8/31 to $12.22 at today’s closing. Lucky investors who got in at that time would have enjoyed a nice 23% gain in just over a month’s time!

Today’s Analysis:

Look at the green letter “A” in the chart above. If you notice, the stock price has went almost straight up from Sept 7 until today. Seems great right? However, Notice the red “A” at the bottom of the chart. That is a Stochastic indicator which measures momentum.  Notice how it is sloping down at the same time the price is going up.  That is a negative divergence and is a “sell” signal.

The letter “B” is today’s Japanese candlestick symbol, which is a “Hanging Man.” This candlestick appears during an uptrend and is a reversal signal.  Another “sell.”

Letter “C” are the volume bars, which are simply the number of shares traded in a day. Each bar represents a day. Notice how the buying volume has been diminishing while the stock price continues to rise. Another negative divergence. “Sell” again.

Letter “D” is the MACD histogram. MACD is a powerful technical indicator. The histogram bars are a nice predictor of market direction. They have flattened out. Watch tomorrow’s bar. If tomorrow’s bar, is shorter than today’s that is yet another “Sell” signal.

Finally the red line above the stock price (see red arrow) is the 200 day price moving average.  That line marks heavy resistance.  Should this rally continue, it will more than likely stall there.   The blue line near the bottom is the 50 day moving average. It can be considered “support.” So any selloff will likely be contained there.  In the middle is a trading range.

Bottom Line: After a 23% gain in a month, take profits and get out! Or if you’re feeling adventurous, short AA or buy puts.

Here is an exercise to check your vision and whether you are in risk of Alzheimer. Please try to solve the puzzle as quick as possible and dont use mouse as guide. Good luck.

1 – Find C below. Again, dont use mouse.

OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOCOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO
OOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOO OOOOOOOOOOOO

2- If you find C, then find 6 now.

9999999999999999999 9999999999999999 9999999999999999 99999
9999999999999999999 9999999999999999 9999999999999999 99999
9999999999999999999 9999999999999999 9999999999999999 99999
9999699999999999999 9999999999999999 9999999999999999 99999
9999999999999999999 9999999999999999 9999999999999999 99999
9999999999999999999 9999999999999999 9999999999999999 99999

3 – Finally find 6, it may be more difficult to find.…

MMMMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMM MMMMNMMMM
MMMMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMM MMMMMMMMM
MMMMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMM MMMMMMMMM
MMMMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMM MMMMMMMMM
MMMMMMMMMMMMMMMMMMM MMMMMMMMMMMMMMMM MMMMMMMMM

This is not a joke. If you pass all tests, congratulations. Your brain works great and you are not in risk of Alzheimer disease. You can now invest your money with no problem.

Table in below shows the average time we spend on the tasks in our lifetime. I don’t know who makes the list but it sounds scary to know people spend 10 years in their lives by watching television on average.

This table doesn’t include the time spent on playing games. Adding those numbers shows that we spend most of the times for daily activities. In the rest of the time, we need to be careful to invest our time to better things just like in our money.

“Opportunity Investment’ is a new style of investment where the investors look for the investment opportunities around the world. It is very different style of investment compared to traditional investment options such as bonds, shares, stock market etc.  You need to make decisions daily basis to get the best profit margins. The profit margins can be as high as 1000% in just one year.

The key object in “opportunity investment” is to find investment sources with high profit potentials. These investment sources need to be unexplored to keep the profit highest.

As the internet makes the information reachable so fast, the investment opportunities are everywhere and with structured and well planned investment plans, you can make millions in a short time of period.