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Special Update: Mr. T Gold Indicator Forms Rare Double Sell Signal


The Minyanville Mr. T Gold Indicator has formed a rare double sell signal. How? Quit your jibba jabba and we'll tell you.


Special Update: Mr. T Gold Indicator Forms Rare Double Sell Signal

In a stunning development, the Minyanville Mr. T Gold Indicator has formed a rare double sell signal on the chart.

Why? How could this happen? Quit your jibba jabba and we'll tell you.

The first signal was generated when Mr. T began appearing in a national television spot for the World of Warcraft video game. See the YouTube clip below:

The second signal, formerly called the Hindenberg Omen until we realized there was another indicator already called the Hindenberg Omen, is now known as a Romney Retracement Parable. The Romney Retracement Parable occurred yesterday when gold bounced after the initial move down created by the World of Warcraft spots, but quickly collapsed after the following exchange between Republican presidential candidate Mitt Romney and CNN's Wolf Blitzer:

Wolf Blitzer: "Mike Huckabee has, in his corner, Chuck Norris, the TV action hero. ... Barack Obama has invited Oprah to come campaign for him in Iowa next week. But I am going to put up on the screen your secret weapon, because we were just introduced to your grandson, Parker Romney, who is 18 months old. He looks like he's a good guy to have in your corner, a sweet little boy. I guess you got a good team there."

Mitt Romney: "He is the best. And he's now learned to go up to people and say, 'Hi.' It's the only word he can say really clearly, but he's out on the campaign trail. He's really something."

Blitzer: "So, I take it you would rather have Parker Romney than Oprah or Chuck Norris."

Romney: "That is true, although my son yesterday suggested that I see if I could sign up Mr. T."

About the Mr. T Gold Indicator

  • What is the Mr. T Gold Indicator?

The Mr. T Gold Indicator is a proprietary technical indicator created by Minyanville to identify and anticipate prospective exhaustion points in the price data for gold. 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 is look at Mr. T. What could be easier than that?

  • How Does the Mr. T Gold Indicator Work?

Good question. The Mr. T Gold Indicator is based on the five squares series of price points using .9444 for downside trend factors and .05556 for upside trend factors, multiplying either .9444 or .5556 by the close of the high (or low) that is referenced by the first series of price objective within the oscillating trend channels. Hahaha! Just kidding (although it would be cool if that really was the Mr. T Gold Indicator formula). The truth, however, is the Mr. T Gold Indicator is simply based on the appearance and popularity of Mr. T. Minyanville has discovered that over the years Mr. T's appearance and popularity is simply a subconscious reminder telling us when the yellow metal has reached an important price peak.

  • Surely, you cannot be serious. Do you think I am a fool?

Shut up, fool! Look, this morning we 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? We pity it. Whatever it is. And we are not alone. Someone else pities the fool. Do you know who? That's right. Mr. T. pities the fool.

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. So who are you going to believe? Some pinhead precious metals analyst at Bigwig, Doofus and Booyah Securities? Or Mr. T? Shut up, fool! You're going to believe a guy whose first name is "Mister", middle name is "period", and whose last name is "T"!

Mr. T Gold Indicator in Action (1982 - 1994)

At this point you are probably thinking, "Quit your jibba jabba." Does the Mr. T Gold Indicator work? How good is the Mr. T Gold Indicator?

Rest assured, the Mr. T Gold Indicator has been weighted, smoothed, eyeballed and thoroughly back-tested for generalish accuracy using both the Internet Movie Database (IMDb) and Wikipedia (the free, somewhat accurate encyclopedia that anyone can edit, even that guy who works in your building with the weird comb-over and Charlie's Angels lunch box... and the more we think about it, probably especially him!). Let's take a look at the historical accuracy of the Mr. T Gold Indicator.

Gold 1981 -1994

Mr. T Gold Indicator in Action (1995 - Present)

Gold 1995 - 2005
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A Fractal-Based Look at the Mr. T Gold Indicator

As you can see, the Mr. T Gold Indicator is a robust tool for identifying high-probability price exhaustion points in gold, both on the upside and the downside. In the above charts we took a long-term view of gold, using the Mr. T Gold Indicator to identify price exhaustion points on a long-term monthly chart. In addition to the yellow metal, the indicator is also useful in identifying similar exhaustion points in the metals stocks themselves, such as Newmont Mining (NEM), Barrick Gold (ABX), Goldcorp (GG), AngloGold Ashanti (AU) and Gold Fields (GFI).

But what about weekly, daily, even hourly and minute-by-minute charts? Don't give me no back talk, sucka! Naturally, it stands to reason that if the Mr. T Gold Indicator is indeed a robust price exhaustion tool then it should apply to smaller time frames of gold price data. That is, because the gold market is a self-organizing complex system with self-similarity on different time scales, the Mr. T Gold Indicator should be just as useful in these self-similar and subdivided minute time frames as it is on a larger scale. But this must be tested!

As you can see from the chart below, on February 22, 1983, gold opened very strong as the opening title sequence to the A-Team television show rolled. However, in this episode, "Bad Day at Black Rock", (see A on the chart below) Mr. T's character, Sgt. Bosco "B.A." Baracus, was seriously wounded by gunfire. About 15 minutes after the first commercial break (see B on the chart below) gold began a brief rebound as The A-Team found medical attention for B.A. from a small-town doctor. However, in the next few minutes, it became clear the small-town doctor suspected B.A. may be part of a biker gang returning to rescue their jailed leader. Gold collapsed intra-day (see C on the chart below) as the doctor warned the local sheriff of his suspicions. It appeared B.A. was done for. But about 22 minutes later (See D on the chart below) Hannibal was able to convince the sheriff that B.A. was one of the good guys. Gold rebounded by the end of the episode as B.A. recovered and the A-Team helped the sheriff protect the town.

Gold, five-minute intra-day chart, February 22, 1983

For more, watch as Hoofy and Boo report on the Mr. T Gold Indicator and have an unexpected guest!

Mr. T and the Price of Gold

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