Yesterday was the fourth day of my transatlantic crossing to Europe. A Nor'easter has been chasing us, following our departure from the Brooklyn Cruise Terminal, which is right across the East River from Wall Street.

The storm is hot on our tail and due to catch up with us today. The skies have been dark, the seas choppy and threatening. But the big storm is yet to come.

No doubt the Queen Mary 2, a fortress of a ship designed especially for crossing the stormy seas of the North Atlantic, will handle the big waves just fine – as she always does. She's built for this kind of thing.

Have you built a fortress ship to prepare for the stormy seas ahead for your portfolio? I hope so! You know how bearish I have been over the past year. If you have followed my advice you've gone mostly to cash.

And if you are of a mind to participate in the market's wild swings, both down and up, you may be trading a small portion of your portfolio – your risk capital – and following one of our trading gurus here at Money Map Press.

Demand for Treasuries at the weekly Treasury auctions has risen by slightly more than the increase in new issuance lately.

With more buying, which should boost price and push the yield down, why have Treasury yields been rising? Because selling in the secondary market has outstripped demand!

Securities prices, just like the prices of the everyday goods that we purchase in daily life, are driven by supply and demand. Money is the fuel of demand. Treasury debt is supply. In today's markets, there's more supply than there is demand.

In the big picture that I have been painting for you over the past year, the growth of money (what professional investors call "liquidity") is waning and soon to turn negative, thanks to the Fed and its foreign central bank cohorts.

This is bad news not just for the Treasury market and bond market in general, but for stocks too. The bad news that we have been expecting is starting to happen.

But this bad news wouldn't be apparent if it were not for the involvement of the Primary Dealers, the legion of big banks that the Fed works with.

Treasury supply continues to bulge, thanks to the yawning federal budget deficit, and the fact that the Treasury must raise $30 billion per month to repay the Fed.

That's because, under its program to shrink its balance sheet, the Fed is demanding that the US Treasury pay back the money that the Fed lent to the U.S. government under QE.

On top of that, the federal budget deficit will top a trillion dollars in the 12 months since the new tax law and spending increases took effect.

The soaring deficit has been steroids for the U.S. economy, but the government must borrow that money before it can spend it. That means that a trillion dollars a year is now hitting, and will continue to hit the market in massive quarterly waves for years. And the money isn't there to absorb it without prices falling drastically. That means lower stock and bond prices and higher bond yields.

Right now, we are in the early stages of one of those waves, and it will decimate stocks and bonds. 

At the Fed meeting last week, Jerome Powell used some code words to warn us to watch out for downside ahead.

Powell told us that he's the tough hombre that will stick to tight policy until there's "a significant and lasting correction in the markets."

That certainly means more than a measly 10% correction, or even a fast 20% decline.

Earlier in the press conference, he alluded to the idea that a housing bust is a much more serious threat to the economy than a mere stock market decline.

So it's pretty clear that there will be no Powell Put for the stock market.