Todd Gordon's Retail ETF Trade

Todd Gordon of TradingAnalysis.com said on CNBC's "Trading Nation" that he sees more downside in SPDR S&P Retail (ETF)XRT.

He explained that the stock is trading close to a significant support, but it's testing it for the third time since 2014 and he expects to see a decline below the support.

To make a bearish bet, Gordon wants to buy the August 39/37 put spread for 65 cents. The trade breaks even at $38.35 or 1.03 percent below the closing price on Monday. It can make a maximal profit of $1.35.