Real or Ridiculous? The Mr. T Gold Indicator
The more you see of the A-Team's warrior, the closer we are to a peak price.
The Mr. T Gold Indicator is a proprietary technical indicator created by Minyanville Editor-in-Chief Kevin Depew in 2005. It identifies and anticipates prospective exhaustion points in the price data for gold. As Depew says, "Some technical indicators rely on formulas applied to the price data of a security, but these types of indicators can be very subjective, requiring an analyst to view the signals that are generated within the context of still more indicators. The Mr. T Gold indicator, on the other hand, is completely objective and easy to use. All you have to do to use the indicator is look at Mr. T."
And, when you're done literally looking at Mr. T, resplendent in his thick gold chains and rakish Mohawk, take a glance at his career arc.
Depew discovered that over the years Mr. T's appearance and popularity tracks neatly with the price of gold; when images of Mr. T are in abundance, it's a subconscious reminder that the yellow metal has reached an important price peak.
Why does it work? Because Mr. T knows his gold. In fact, Mr. T began to amass his gold chain collection during his pre-television career days as a nightclub bouncer, confiscating the jewelry of patrons he ejected, and looping them around his neck as trophies, of sorts.
"When looking for insight into the gold market, who are you going to believe?," Depew asks. "Some pinhead precious metals analyst at Bigwig, Doofus, and Booyah Securities? Or Mr. T? You're going to believe a guy whose first name is "Mister", middle name is 'period', and whose last name is T!"
According to Depew, the Mr. T Gold Indicator has been "weighted, smoothed, eyeballed, and thoroughly back-tested for 'generalish accuracy'. " His tools: the Internet Movie Database (IMDb) and Wikipedia.
Since 1984, the indicator has worked remarkably well, identifying high-probability price exhaustion points, both on the upside and the downside. For example, when Mr. T appeared in the television production Sabrina: The Animated Series in 1999, the show flopped. And 1999 was a low point for gold.
In November 2007, Mr. T appeared in a commercial for World of Warcraft -- the very same month gold surged to a 28-year peak of $824 an ounce.
Click the charts below to see a description of each turning point in gold based on the Mr. T Gold Indicator.
To further prove the accuracy of the Mr. T Gold Indicator, when Cloudy with a Chance of Meatballs opened in September 2009, gold, which had briefly broken the $1000 barrier earlier in the year, once again topped $1000 an ounce.
However, we'll have to wait until June 11 to re-test the Mr. T Gold Indicator's prowess. That's when The A-Team movie comes out, directed by Joe Carnahan, perhaps best-known for helming 2006's Smokin' Aces, starring Ryan Reynolds.
As of this writing, gold closed the day at $1086 an ounce. Where will it be in June? If the Mr. T Gold Indicator continues its incredible power of prognostication, it should be trending higher.
Off-the-record advice? Buy now.
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