Quayle Quotes

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Just for the hell of it………a political blast from the past – – favorite Dan Quayle quotes:

  • “Welcome to President Bush, Mrs. Bush, and my fellow astronauts.”
  • “One word probably sums up the responsibility of any vice president, and that one word is ‘to be prepared.'”
  • “Verbosity leads to unclear, inarticulate things.”
  • “I have made good judgments in the past. I have made good judgments in the future.”
  • “We are going to have the best-educated American people in the world.”
  • “People that are really very weird can get into sensitive positions and have a tremendous impact on history.”
  • “For NASA, space is still a high priority.”
  • Shortly after Bush announced the Space Exploration Initiative, which included a manned landing on Mars, Quayle was asked his thoughts on sending humans to Mars. In his response he made a series of scientifically erroneous statements: “Mars is essentially in the same orbit [as Earth]….Mars is somewhat the same distance from the Sun, which is very important. We have seen pictures where there are canals, we believe, and water. If there is water, that means there is oxygen. If oxygen, that means we can breathe.”
  • “You all look like happy campers to me. Happy campers you are, happy campers you have been, and, as far as I am concerned, happy campers you will always be.” (In a speech to American Samoans, April 1989)

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Breakaway Santa

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SPX closed back over the 5 DMA yesterday and unless a war starts in the next few minutes, looks likely to gap up hard at the open today. Bulls need a green day today to confirm a likely retrace low and after that SPX should be off to the races for the rest of December. If this is a true breakaway gap then the opening gap today will not fill. Daily middle band resistance is at 2045. SPX daily 5DMA chart:

141218 SPX Daily 5DMA Breaks

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Trading the News

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After the seemingly unstoppable Russian Ruble + Oil price collapse, on Wednesday the market actually managed to close higher.

Yesterday we were just writing in our E-mini daily analysis that once the market reaches very oversold levels the bounce is always inevitable and that one should be careful when listening to the news: the falling oil prices and the Russian Ruble collapse were everywhere on the headlines, but you cannot know when the market will turn using the news. We have recently posted a humorous YouTube video on why you should avoid “Trading the News”.

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Can a Portfolio Truly Be Well-Diversified?

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Although we often hear (or read) the words “diversified” and “portfolio” together, we should question if it is really true that an investment portfolio can really be well diversified.

To speak about diversification, we first need to speak about “correlation”. When it comes to correlation, our creed can be summed up in a statement once made by Ray Dalio of Bridgewater Associates:

“People think that a thing called correlation exists. That’s wrong. What is really happening is that each market is behaving logically based on its own determinants, and as the nature of those determinants changes, what we call correlation changes”. (Jack D. Schwager, “Hedge Fund Market Wizards, How Winning Traders Win”, Wiley 2012) (more…)