The Most Volatile Season of Trading is Here

If you arent familiar with seasonality, it is the idea that markets have cycles over the course of the year. Aug-Oct is typically the most volatile season of the year with September having the most crashes and large drawdowns, far more than any other month.

This is great for traders if you recognize it because it gives good entry opportunities for you.....because Nov-Jan is one of the best seasons for Market Rallies. If you position well in Oct you can have a great end ot the year

But the key is to know and understand these typical cycles and take it into account when developing your overall market thesis.

Here is what I mean by that:

With the on again/off again narratives on the Iran war, the markets getting used to Kevin Warsh and Kevin Warsh getting used to his new role, talk of a potential rate hike at the Sept FOMC meeting combined with the seasonality cycle, it is reasonable to expect a pretty choppy season from now through Oct.

Almost any market environment can be traded successfully.....if you understand it. Short term traders will do well in this environment taking base hits, and if you are a trader that likes to trade LEAPS on Mag 7....I would wait tor a good pull back before entering any trades.