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It would seem that the pessimistic sentiments of a few months ago have been renewed and this has perhaps been driven by a realisation of the true impact of the cuts announced in the emergency budget.
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"This is the most pessimistic sentiment against the United States that I have ever experienced in my career.
Off the pitch, pessimistic sentiment has also been widely banished in favour of "can do" self-help jargon or stilted syntax with multiple negation.
"This is the most pessimistic sentiment against the United States that I have ever experienced in my career," said Wolfram Gerdes, chief investment officer for global equities at Dresdner Investment Trust in Frankfurt.
An unwinding of this extreme pessimistic sentiment could provide an influx of sideline money for YGE.
Near-term pessimistic sentiment clouded the February contract as one investor initiated a ratio put spread on the fund.
To take advantage of this unwinding of pessimistic sentiment, traders should consider the stock's June 55 call.
E*Trade Financial : A bearish risk reversal in the January 2011 contract on E*Trade Thursday indicates long-term pessimistic sentiment on the online brokerage firm.
One bearish individual populating the options field on DD booked profits on a previously established long put position, and subsequently increased pessimistic sentiment on the stock by picking up a fresh chunk of calls at a lower strike price.
Given the recent drop in pessimistic sentiment seen in the volatility indexes and the CBOE equity put/call ratio, we may very well see the bull/bear ratio begin to climb quickly, which would warrant some caution.
Wrapping it up, the market appears ready to move higher based on the combination of pessimistic sentiment, improving technicals (given that the above scenario plays out), and a fairly healthy fundamental picture.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com