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Caution Warranted August 2026

  • Writer: T. Livingston
    T. Livingston
  • Aug 30
  • 2 min read

Caution is warranted now with the market heading into September.

There are a few reasons why I moved into cash last week. First, trading has been difficult over the last two months, and many former leaders like SNDK, NBIS, and MU are now forming deep, wide, and loose bases. Many stocks look to be in Stage 3, with AMD being an example. We are also seeing the percentage of stocks above their 50-day moving averages decline while the S&P 500 remains within striking distance of all-time highs. The same can be said for the percentage of stocks above their 200-day moving averages.




September is usually the weakest month of the year, and the midterm year is notorious for difficult trading (2022, 2018, etc.). In addition, the Fed is on many traders' minds, and that can lead to sharp selling if there’s a rush for the door. With this backdrop, we can see that NAAIM is just around 100, and the VIX is showing complacency.





All of this tells me it’s time to take a step back. I can always get back in if things improve, but right now, it’s hard for me to have any desire to trade in this environment.


Risk right. Sit tight.



Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.

 
 
 

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I Hypothetical Performance Disclosure I Terms Of Services | Risk Disclosure

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

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