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MarketsAnalysisPast Article

The Story a Selloff Wants to Tell

A down day acquires a cause by afternoon. The cause is often fitted after the move.

By Marcus Ell, Markets Columnist

New York1 min read

aerial view of city during nighttime
aerial view of city during nighttimePhoto by Denys Nevozhai on Unsplash

A sharp decline looks, by the close, as if it had a single reason. The reason is usually assembled from whatever else was on the calendar. A release, a headline, a comment. The fit is neat because the day is over and the narrator knows the ending.

That does not mean nothing happened. It means the percentage, if you have one from a real closing summary, is the fact, and the story attached to it is a hypothesis.

The practical habit is dull. Write down the print. Write down the document that was actually published that day. If the document does not mention the market, do not pretend it caused the market. Readers can hold two thoughts. The price changed. The cause is not yet earned.

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