Caution

August is a month with much less liquidity than usual so moves are likely to be exagerated. In addition, for those traders who are into astro-economics, there’s something known as a cardinal cross taking place and the interpretation of this is largely negative for the financial markets. I don’t know it it’s true or not but it doesn’t matter if it’s true or not. What matters is how many people trading believe it’s true and how that will affect their trading. In addition, there’s a fair amount of uncertainty overall. With all of this the month is likely to be difficult to trade so caution is necessary. Staying out more than being in is probably the best approach.