We had some nasty action this week, courtesy of a more hawkish-than-expected Fed on Thursday.

The market's known about the Fed's theme of "higher rates for longer," and it feels like this is finally settling in traders' minds.

As you know, we don't obsess over news and predictions - but we do have to pay close attention to the price action, because that's how we know what matters.

And the action this week definitely told us the Fed is a challenge for longs right now.

The 10-year yield is at 15-year highs, and if it keeps ratcheting up, markets won't like as it seems the computers are programmed to sell at new thresholds higher.

We got a small relief rally today, but it doesn't feel sustainable. I wouldn't be surprised to see lower prices next week, which is why I've been very light and keeping positions on a tight leash.

As you can see on my disclosures below, I'm only in options, so my risk is defined.

Early in the week, I exited Microsoft (MSFT) from Power Plays for a small loss, and it's been down another $8. That's why we manage risk. You never want to dig yourself a hole by letting a paper cut turn into a gusher.

Hopefully, we'll get some healthier setups next week if the market shows some signs of better stability.

Have a great weekend.

-Scott