Good morning contrarians! Stocks are pointing to a higher open after the long weekend. Dead cat bounce?

Existing home sales at 1000 is the main economic data release of the day. This data release is unlikely to move markets, but it points a pretty ominous picture of the U.S. real estate market, which drives a lot of U.S. consumer confidence — and therefore U.S. consumer behavior, which basically drives the world economy.

There is no immediate catalyst for the bounce in risk assets this morning. Remember these things are typical of bear markets and quickly give way to selling as the trading day wears on. Concerns about the economy are pretty rampant. Higher interest rates are the root cause of this. It’s difficult to see how any kind of sustained buying can develop while the Fed remains hellbent on raising rates to rein in inflation. So until inflation comes down, this is the reality of the situation.

At least these are my views this morning.

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