Why The Slaughter In Estee Lauder?

em>Joel Elconin is the co-host of

, a daily trading idea radio show.

Estee Lauder Co,

share are trading lower by $6 at $82.82 in Monday's session. Despite posting a Q4 EPS beat ($0.40 vs. Est. $0.34), the Street is focusing on its sales miss ($2.52B vs. Est. 2.57B). Also, worrisome to investors is the lowered FY2016 GAAP EPS from Est. $3.28 down to $3.10-$3.17 range. Since it Q3 beat on May 5, the issue has been in a well defined trading range from $85.96 to $91.68. The lower end of the range was much better than top of the range as the issue made multiple lows just above and below the $86 level and staged significant rallies. However, in today's session the key support level has given way, big time. After a lower open ($86.85 vs. Friday's close of $88.82, it managed a very brief pop to $88 before caving. Once the $86 level was breached the issue wne into a freefall that may not have found a bottom. So far, it has reached $82.71, but has not been able to distance itself very much from that low, The initial pop took the the issue to $83.50 but is drifting back to the lows for the day. The current intraday low coincides with its May 4 low ($82.67) which was one day before its surprising Q3 beat. Today's route is taking place on heavier than average volume. So far, 7.1M shares have changed hands compared to its 20 day average of 1.75, .