A Short in a Long World
Electronic Arts (ERTS) is caught in a major downtrend, with video game and hardware sales falling at their fastest rate in years. Whether game saturation, pirating or the weak economy are to blame for the decline, the younger generation is sitting on their hands and refusing to buy, except for the most popular sequels.
ERTS never recovered from the credit meltdown plunge to 14.24. It topped out in June in the low 20s and rolled over, in a slow decline that ended in September near support at 17.50. The stock has failed to rally off that level in the last two months, pointing to a possible breakdown that might test the bear market low prior to year’s end.
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