AEO continues to perform according to our expectations. It was briefly down $9 on $23 or roughly 40%. No idea what the count is other than it is definitely not complete. This is probable a 3d wave. Ultimately we should get to $12 but RSI and MACD indicate  a possibility of a brief turn soon. If nervous buy it back otherwise stay with it, perhaps with a stop buy order for protection.

See blog of Aug. 3 2013. Down 12% today alone.

The usual then – Oct 2012 – and now charts. Nothing to add. Probable a series of 3 1-2s over the past nine months. When it breaks down it should accelerate.

American Eagle Outfitters is an apparel retailer, trading at a p/e of 23 and yielding about 2%. The people at the G&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.