-EXCLUSIVE- On Wednesday, after Jerome Powell appeared more hawkish than anticipated at the FOMC press conference, the market turned. Although they didn't raise the federal funds rate, the main point of friction in what he said was that they maintained their intention to raise the rate one last time and, more importantly, that the rate will stay where it is for longer than anticipated. This had the bond market moving noticeably, driving yields higher brutally. Higher bond yields are a massive headwind for stocks, and therefore the market readjusted by closing with a significant red candle on Wednesday and opening with a considerable gap down on Thursday. On Friday morning, after opening in the green, the market ended up mostly flat. Is this the start of THE crash everyone is expecting? Should the strategy hedge this move?
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