I believe the risk/reward in stocks has tilted back to a neutral level. The only thing that has changed in Europe is perception. Italian bonds are trading worse than they were before the summit. Sentiment is starting to lean to the overly bullish camp, although some large investors seem to be under-invested. Seasonality is a positive. While I have reduced my long exposure, I am maintaining moderate net long exposure. This is due to the fact that I have confidence in some individual stocks rather than the broader market.
On a personal note, it feels so much better to have lowered my equity exposure. The last few months have been brutal in terms of stress and lack of sleep. Not to mention twenty trips to the bathroom a day. I wish I were exaggerating. This business is not easy, even when one is doing well.