The Shadow

The Shadow knows. There used to be a radio program called The Shadow where the hero, Lamont Cranston, the Shadow, would overcome the shadowy forces of doom by clouding the vision of those around him. "Who knows what evil lurks in the hearts of men" was their intro line. They were great shows and you can still find them on the Internet.

The stock market is kind of like the shadow. As you walk along with the sun at your back you cast a shadow. No matter which way you move the shadow stays ahead. Fast, slow, right, left. It doesn't make any difference.

An equity market is the shadow of the economy staying out in front following every twist and turn. Depending upon the height of the sun the shadow may be long or short. You can see it either as a long term or short term prediction of the passage.

If you did not know what a shadow was you would not realize it is telling you something about where you are going. If you see the shadow fall across a hole you know you must step over or around it depending upon its width and depth. The path of our economy is predicted by the direction of the stock market. When things are good and everyone is making money the shadow seems to go up and when the economy slows (for whatever reason) the shadow darker and heads down.

At this time (11/04) the sun is shining brightly and the shadow stretches out long and friendly before us. The stock market is going up and everyone is feeling good, but we also know that tomorrow storm clouds may appear making our shadow seem to be a monster black image that hides the potholes in our path.

When that occurs we must be ready to put on our raincoat to protect what we carry through life. One of the most important is the money we have put aside for the time we wish to depart the path, sit by the road and contemplate all the beautiful things we have brought. That means we must guard against losing what we have created and not let the shadowy rain cloud wash them away.

That raincoat for your investments is an exit strategy for your portfolio. Without a plan to protect your assets it will be too easy to seem them washed away. This does not mean diversification which is what brokers want you to do. It means a plan to exit (sell) stock and mutual funds that are going down. This can be done with a simple percentage stop-loss order for your stocks and a mental stop loss for funds.

Brokers never want you to sell even though there may be a commission involved because once you money is in a money market neither they nor the brokerage company makes any money. You and only you care about your money so you must protect it. Think about an exit plan now and put it into place.

Do not become a victim of the dark shadow.

About The Author

Al Thomas

F*R*E*E investment letter www.mutualfundmagic.com

Author of best seller "IF IT DOESN'T GO UP, DON'T BUY IT!" Never lose money in the market.

Copyright 2004 Albert W. Thomas All rights reserved.

Former 17-year exchange member, floor trader and brokerage company owner.

limo prices to midway Crystal Lake west of Randal .. Lockport Chicago limo O’Hare
In The News:

A multipurpose robotic system promises to transform how items are stacked onto pallets, aiming to maximize space utilization and reduce shipping costs.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The number of people affected by a UnitedHealth data breach in February 2024 was actually higher than previously reported and was the largest medical data breach in U.S. history.
A phishing campaign uses Google Calendar to schedule fake meeting invitations that appear legitimate, redirecting targets to phishing sites.
Toll road text scam: Fake messages claim unpaid fees, seek payment via fraudulent links. Kurt “CyberGuy" Knutsson says this scam is becoming increasingly sophisticated and widespread.
Kurt “CyberGuy" Knutsson says these steps ensure that your friends and family get to the exact moment you want them to see. Try it out and streamline your sharing experience.
Tech expert Kurt “CyberGuy" Knutsson offers tips on how to protect your identity: Be vigilant, monitor accounts, use smart security, know theft response.
Tech expert Kurt “CyberGuy" Knutsson says cybercriminals are exploiting iMessage phishing protection, tricking users to reactivate links.
It's hard to imagine life without in-flight Wi-Fi these days – but sky-high web surfing comes with its own set of privacy concerns. Here's how to protect yourself.
Over 400,000 cases of credit card fraud were reported in 2024 to the Federal Trade Commission. The CyberGuy explains how to protect against becoming another victim.
A nondescript metal box transforms into a fully functional electric motorcycle that blurs the line between vehicle and urban infrastructure.
Many apps unrelated to location still ask users for tracking permission, and Texas Attorney General Ken Paxton has filed a lawsuit seeking to end this alleged practice by Allstate.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Melody, the artificial intelligence-powered robot, is life-sized and represents a move toward creating robots that resemble people in appearance and interaction.
Here are five easy smartphone rules from the National Security Agency that you can follow to better protect your mobile device from hackers and scammers.
A U.S. robotics company has developed "Jennie," a robotic pet powered by artificial intelligence that's designed to comfort those facing mental health challenges.
Healthcare records for more than 184 million Americans were breached in 2024, but you can take steps to minimize that risk. Kurt the CyberGuy explains.
The Skyrider X1 from Rictor claims to be the "first amphibious flying passenger motorcycle," and it combines land and air travel in one sleek design.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Home inventory and restoration apps help itemize and track every item in your home in the event you have to make an insurance claim after a natural disaster.
The White House launched a new cybersecurity safety label, the U.S. Cyber Trust Mark, intended to help consumers make informed decisions on smart device safety.
Today's tech can help make life so much easier — if you know how to use it. Here are a few tips on the quickest and best ways to make your phone, laptop and other devices work for you.
Tech expert Kurt “CyberGuy" Knutsson offers Windows 11 restart fixes: Update drivers, run system scans and check hardware.
Sony and Honda's Afeela 1 EV launches with advanced tech and entertainment for $89,900. Tech expert Kurt “CyberGuy" Knutsson gives his takeaways.
With limited hard drive space, tech expert Kurt “CyberGuy" Knutsson offers these tips for storing large video files and photos.

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

The Seven Mistakes All Novice Traders Make and How to Correct Them

We learnt the following the hard way! If any of... Read More

Tips to Finding Other People?s Simple Trading Plans

Did you know you can make money (and a lot... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

The 401(K): How The Insider Has Stolen Your Retirement!

Mutual funds were moderately successful in creating a presence in... Read More

Online Investing & Online Stock & Share Trading: Difficulty in Taking Stop Losses in the Market

This is an extract of an article which was first... Read More

Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on... Read More

Mutual Funds: The Modern Den of Thieves!

Mutual funds were created with the idea that one person... Read More

Dont Spend Another Dollar on Business Opportunities Until You Read This

With an insecure job market, overworked employees, insufficient retirement savings... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

Stock Market Investing Odds

The greatest stock market myth is the idea that investing... Read More

Fools Gold

The stock market has been in an up trend for... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

The 1% Solution

You probably know the story of Sherlock Holmes and the... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Enron Cure

Let's hope you did not have any of the Enron... Read More

Political Investing

We have two candidates for president that have really different... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

What the SEC Really Thinks About Mutual Funds!

Let's go into the details of why non-indexed mutual funds... Read More

Jack and Jill

Jack and Jill went up the hill to fetch a... Read More

Leverage - Margin Debt

What is leverage?Here is a definition of leverage from an... Read More

Trading as a Business

What can I expect to make my first year of... Read More

The Great Stock Market Secret

When the stock market is going up and all your... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

Investment Clubs

Because you don't feel too sure about which stock or... Read More

taxi o'hare Auburn ..