Outside the Box: These 2 shocks will jolt stocks higher — and 15 smart ways to prepare for that move

Investor sentiment has now fallen prey to the stock-market equivalent of cardiac arrest.

That’s understandable. Popular stocks like Amazon.com AMZN, +4.97% Apple AAPL, +2.92% and Facebook FB, +0.50% are all in bear-market territory. So are broad sector indexes like the Vanguard Energy exchange-traded fund VDE, +1.50% the SPDR S&P Biotech ETF XBI, +2.39% and SPDR S&P Homebuilders ETF XHB, +1.84%

Sentiment is now so dead that it suggests the next leg of the stock market is up, in the contrarian sense.

Consider the ratio of open interest in puts (a negative bet) to calls (a more hopeful position).

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