monday’s sharp selloff put the sp 500 into bear market territory along with the nasdaq which is now off 33 monday also marked four consecutive days of being down 1 or more something rarely seen in equity markets volatility surged higher with the vix closing just over 34 more than double its historical mean when tornado sirens went off throughout chicago last night it felt apropos what i find even more interesting and potentially concerning is the continued selloff in treasury markets 10year notes are now above 33 and that is pushing mortgage close to 6 the impact of the higher mortgage rates could cause spillover not only into the housing sector but construction as well if the market cools off we’re also seeing an inverted yield curve right now with shorter term maturities yielding more than longterm bonds as we write in the premarket  the yield on the 2year note is greater than the yield on the 30year bond that in and of itself is a rarity and has frequently been viewed as a sign of a possible recession interest rates on the 2year surged yesterday to its highest levels since 2008 with yields moving higher traders are focused on the fomc meeting beginning today markets have been expecting a halfpoint raise to be announced wednesday at the conclusion of the twoday meeting fed chairman powell has a history of transparency when it comes to articulating fed policy following may’s meeting he signaled a halfpoint raise in june and indicated he wasn’t considering anything more however following the move in treasury yields recently there is growing speculation of a threequarter point hike many retail traders have been understandably shaken by the recent selloff across asset classes yesterday i made a point of saying no one makes money when they panic and that hasn’t changed for those who are concerned and want to raise cash or just breathe easier selling positions does not have to be all or nothing if you feel the need to sell think like a professional that is selling only a portion of holdings is an option that may allow some peace of mind while also maintaining exposure to markets in the event they begin climbing back for option traders the high volatility continues presenting a number of trading opportunities although discipline is more important then ever as always though trading small and sticking with your investing timeline shouldn’t change simply because market conditions changed bear markets are a normal part of the business cycle and eventually they will end no need to call the bottom just look for the opportunities that match your timeline and more importantly your risk tolerance tastytrade inc commentary for educational purposes only