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Point & Go Figure: Gold? I Pity the Fool!


Stop your jibba jabba.


This morning I awoke pitying the fool. Not a specific fool, mind you, but just pitying the fool in general, the very idea of foolishness. You know that thing which makes one a fool? I pity it. Whatever it is. And I am not alone.

Someone else pities the fool. Do you know who? That's right. Mr. T. pities the fool.

Now why should we be thinking about Mr. T today, some 25 years after he became famous playing the gold-plated boxer Clubber Lang in the 1982 film, Rocky III? C'mon fool, do I have to spell everything out? It's about the gold, fool! Gold!

Mr. T pities the fool, and the reason Mr. T pities the fool is because Mr. T knows his gold. In fact, Mr. T developed his gold-wearing ability during his days as a bouncer, confiscating the gold jewelry of those he kicked out of nightclubs as a symbol of his toughness and virility.

Mr. T knows human behavior, and he knows gold. He knows human behavior and gold so well in fact, that over the years his appearance and popularity has often served as a reminder, perhaps a subconscious one, telling us whenever the yellow metal has reached an important peak.

Below is the Minyanville Mr. T Gold Indicator from 1982-to-present with important peaks marked. Stop your jibba jabba and look at it, fool.

Gold, 1981-1989
(Chart courtesy Thomson Financial)

The A-Team ends its television run in March 1987, a final farewell for Mr. T. Or is it?

Gold 1991-1996
(Chart courtesy Thomson Financial)

So where is Mr. T today? Don't look now, fool. He's right behind you in the "Bring Back the A-Team" reunion show to be broadcast in the UK (you know, near where they keep the London Metals Exchange) this Wednesday, and he's coming to American Television this October with his new show ("like Dr. Phil with bling") "I Pity the Fool."

Gold 96 to present
(Chart courtesy Thomson Financial)

Point & Go Figure Market Overview:
The NYSE Percent Above 50-day Moving Average Indicator remains in Os, now below 50% through Friday and the Nasdaq Percent Above 50-day Moving Average Indicator is also in Os and below 50%, having broken down from a triangle formation.

The High-Low Indices for the NYSE and Nasdaq are mixed with the Nasdaq in Os and the NYSE holding in Xs, only 1.65% from a reversal down after falling by 5.65% on Friday, but is likely to reverse down with today or tomorrow's action, forming a lower high and what would be a very bearish reversal down from above 70% to below 70%, its first cross from above 70% to below 70% since last September.

The longer-term bullish percents for the NYSE and Nasdaq Composite are both still in Xs, but the larger pattern of lower highs also remains intact, a significant long-term bearish divergence, and on Friday each declined more than 2% and more than 1.5% respectively, significant declines in a single day.

The more narrow S&P 500 and Nasdaq-100 Bullish Percents both are negative, each in a column of Os.

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Position in gold.

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