This market gave me a gift today. Any up day is a gift that needs to be taken advantage of. The market is going to crash in the next few months as the S&P 500 falls faster than the snow is going to fall tonight in Washington DC. The recession has a very high probability of occurring as the yield curve continues to flatten. Notice how the Fed now is now not expected to raise rates in March. This is exactly what I predicted would happen. As you can see from the chart below, the Fed now only has a 34% probability of a rate increase. This used to be over 50%. The reason it has fallen is because the market is beginning to price in a recession. Clearly this has much further to fall because there is no chance the Fed will raise rates in March. That would be suicidal for the economy which looks incredibly weak. You can take advantage of this by shorting bank stocks. I mentioned I am short Bank of America in my last post. Another stock to take a look at shorting is LGI Homes. They build houses predominately in Texas. Texas will be hit hard by the collapse in fracking. If Schlumberger just cut 10,000 jobs, imagine how many jobs firms like Continental Resources will cut if they even stay in business. (I'm not predicting Continental will go out of business, I'm saying firms in the fracking industry will go bankrupt when their hedges come off this year). Real Estate in Texas will collapse and so will LGIH stock.