Trade of the Day: GameStop Corp. (NYSE:GME)

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My indicators are giving bearish signals here in the last week of trading before the U.S. election. One of the important things to keep in mind is that the election is kind of freezing all consumers. Consumers are just not spending, period. Everybody’s waiting to see what’s going to happen before they make any large purchases. While we obviously don’t know who the next president is going to be at this point, that control of the Senate and House is up for grabs is also making people very nervous and causing the market to freeze in a sense.

So, we are in a very flat, very quiet market and, despite the steady stream of earnings coming in, we’re not seeing much action at all. However, I think something’s going to happen after the election, one way or the other. My gut feeling is that the market will decline and we’ll get a good correction. In this lukewarm consumer and market environment, today’s looking like a good time for a bearish play on retailer GameStop Corp. (NYSE:GME).

Buy to open the GME Dec 23 Puts (GME161216P00023000) at $1.20 or lower.

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Article printed from InvestorPlace Media, https://investorplace.com/2016/11/trade-day-gamestop-corp-nyse-gme/.

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