The market is at a tricky juncture. Sentiment is excessively bullish and we have not had a real gut check for the bulls in months. However, we are a week away from the seasonally strongest three week period of the year. Often during these seasonally strong periods we see extreme optimism become even more extreme. This makes for a difficult decision as both the bulls and bears can make a good short term case.
There is still room this week for a correction. If we were to see some corrective action this week I would be willing to add moderately to my long exposure heading into strong seasonality. However, if the market keeps zooming ahead I would likely tighten my hedges up. Under normal circumstances I would be market neutral or net short right now but as a result of the positive seasonality I have medium sized long exposure with some April SPY puts for protection.