Hamilton's E-Wave Analysis

AEO, American Eagle Outfitters

aeo oct 2012

American Eagle Outfitters is apparel retailer, trading at a p/e of 23 and yielding about 2%. The people at the &M see a W-formation and conclude that the stock should go higher, at least if it doesn’t go lower. We think this is a sell, now. The stock drops from $35 to $6 with the rest of the financial universe, then regains it’s footing and retraces a perfect 61% of that in the next 4 years. It does it in an uncannily symmetrically proportioned a-b-c in which even the b breaks down again in a perfect a-b-c. By all accounts this should be it and wave C down just started.