From a technical standpoint the stock has been taking on water ever since it touched its 50 on a few gap an runs. This follows the 6 months of channeling leading to the breakout. Since the decline began GME has followed a trendline down with the lower BB through support around 38 and through both moving averages (50 and 200 dma). This has occured on increasing volume and I suspect that institutions are begining to take profits on GME. The ideal entry would be at 38 or higher with an initial target around 33 where a gap becomes closed from there GME may trade in the old range for an indefinate period of time before the big collapse. I suspect when all is said and done this decline will look alot like MOVI's.
There are alot of factors to keep in mind. The new nintendo DS lite is selling out like crazy right now along with the games. But I suspect this may hurt GME because the system only sells for 130$ so if it is being bought instead of the PSP at 250$ or xbox live at 500$ then GME may miss out on some profit. GME apears to be aware of this and is trying to make up for the cheaper system by selling in house accessories and system bundles. Also nintendo's new system wii coming out this christmas will be much cheaper than the competition. Again this is just speculation but I think nintendo is going to come out way ahead in all this stealing market share from it's competitors with innovative ideas like touch screens and motion interactive games, not to mention much lower costs.
I will follow this one for a while as I suspect there may be alot of downside comming for GME. There will be more later as the situation develops. For now go try out the new nintendo DS and ask yourself if nintendo is once again about to rule the world.
NOTE: I will be on vacation for the next two weeks so there won't be much if any posting during this time. The other members may post if they want. I will be back online in the swing of things mid july. My current holdings are long: IOTN, MOVI, HOM, short: GME. Have a great summer!