The market is worried that the Fed might continue to raise rates for longer than what was previously expected, that rates could go above 5 percent.

That could cause the Fed to raise rates faster.

Now it looks like the Fed might raise rates at the January meeting, and that might be it.

The U.S. economy is very resilient and the Fed will raise rates at least two more times next year. The presence of oil money and foreign central banks has put a cap on long-term yields.

We got a green light last month when the Fed decided not to raise rates, then we got another green light when the bond market rallied last Friday, ... The balloon is still blowing up. I'm staying defensive. I still say the bubble is going to break. I just don't know when.

The market is on guard after Broaddus reminded us that the day of reckoning when the Fed raises rates is drawing nearer and the rebound in global stock markets is adding fuel to the fire,