Jane_Doe - 1:08 am on Jul 26, 2010 (gmt 0)
I'm having the worsed July ever... despite the fact that my traffic is at an all time high.
Sometimes higher traffic levels can bring in less focused users. I know it sounds counter-intuitive, but sometimes with Adsense it is best to let rankings slide on very generic one or two word terms that may be bringing in lots of tire kickers but not actual customers for your advertisers.
With affiliate programs and banner ads more traffic is usually better and seldom hurts, but Adsense works a bit different.