I no longer get the sense that many are looking for a pullback. Today's action has a "just get me in" feel to it. No doubt this can continue for a while, but this action typically occurs in the late innings of a rally.
While I have significantly reduced my net long exposure, I remain modestly net long. Why am I not net short? Because even after a 25% rally the S&P 500 still only trades at a little over 13 times 2012 estimates. There are good reasons for this as the structural imbalances and excess debt in the economy are still present. That said, who says the market cannot go to 14 or 15 times. Have a great weekend.