Market update - ANF positive alert

A statement so crisp and clear from Trichet is barely heard - hence the rate cut is sure, since the FED takes the lead this week. That increases the temp low scenario substantially for Wednesday as the NDX has a daily 11 count and we are below weekly Bollinger levels. The opening was with a gap, creating the chance for a reversal pattern. Still this might not be enough to create the final low level for now.

Special situation for ANF (Abercrombie): as the stock trades at really cheap valuation and has made a weekly and daily 13 - that's a stock to be put on the radar screen if you want to add a long position.

Excerpt Bloomberg

Trichet Says ECB May Reduce Rates Again Next Week (Update2)

By Ben Sills and Gabi Thesing
Enlarge Image/Details

Oct. 27 (Bloomberg) -- European Central Bank President Jean-Claude Trichet said he may cut interest rates next week, less than a month after slashing the key rate by half a point, as the financial crisis intensifies.

``I consider it possible that the Governing Council would decrease interest rates once again at its next meeting,'' on Nov. 6, Trichet said in a speech in Madrid today. ``It is not a certainty, it is a possibility.'' He declined to comment on how big a November rate reduction might be.

Another one stating the 'ANGST':

The pre-market readings may be adding to volatility during a month poised to be the worst in the 38-year history of MSCI Inc.’s index for developed countries, investors said. While fundamental concerns about the health of the global economy and solvency of banks are weighing on investors, the false cues are adding to uncertainty, said Arthur Cashin, director of floor operations for UBS Financial Services at the New York Stock Exchange.

“It’s a state of permanent anxiety, because you don’t know where things are going to go,” said Cashin, a member of the NYSE for 44 years. “People are scrambling to try to stay up with it, so far unsuccessfully.”

Partly good news at new home sales - but keep in mind that it is at 6% jobless rate, which is going to get worse

The median price of a new home decreased 9.1 percent from a year earlier to $218,400, the lowest since September 2004.

Sales were down 33 percent from September 2007, the Commerce report showed.

On a positive note, builders cut inventories at a record pace. The number of homes for sale fell to a seasonally adjusted 394,000, the fewest since June 2004. The 7.3 percent decline from August was the biggest since record keeping began in 1963.

Supply Falls

The supply of homes at the current sales rate fell to 10.4 months' worth from 11.4 months. A five to six months' supply is often cited as signaling a stable market.