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Even though the market saw its best one-week rally in five years, our indicators are giving neutral readings this week, so my outlook is cautiously bullish. One reason our indicators may be neutral this week is that there are a lot of stocks that are not participating in the rally. In other words, market breadth is weak, with only a few certain sectors moving higher.

Following the results of the presidential election, the two areas of the market that really reacted were the pharmaceutical stocks and the banks. However, I still think the Fed is going to increase rates in the future, and that won’t be good for the market. With that in mind, and with the stock trading higher this morning, now looks like a good time to establish a bearish position in GameStop Corp. (NYSE:GME).

Buy to open the GME Jan (2017) 20 Puts (GME170120P00020000) at $1.00 or lower.

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