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The Gypsy is a woman who has a fortunetelling shop in Ethnictown.

The Simpsons meet the Gypsy when they are walking in Ethnictown, see her fortunetelling shop, and go in. The shop has the accouterments one would expect to find in a fortunetelling establishment: a beaded doorway, a crystal ball, Tarot cards, shrunken heads, and so on.

The Gypsy is very streetwise, almost to the point of paranoia. She goes to great lengths to make sure that Marge isn't a cop: "You gotta tell me if you are." The Gypsy's street smarts are vindicated, however, when on first sight of Homer, she "senses" that she shouldn't take a check from him. Homer, for his part, accuses the Gypsy of being a fraud and a fake, and tries to unmask her by tugging at a wart on her nose. The Gypsy's nose and the wart are both real, however, and Homer gets several warts on his thumb from having touched it. Now mad at Homer, the Gypsy orders him to leave.

Homer disdainfully heads for the door. However, the beads in the doorway freak him out. Homer screams and flails about, knocking over all kinds of things, including candles, which starts a fire and sets off the sprinklers, trashing the Gypsy's shop. She then puts a curse on him: "You will bring bad luck to everyone you love!" Over the next several days, Homer's family and friends suffer various horrible fates...