There is no question that today’s market move was bullish after a poor report from Google (NASDAQ : GOOG) and what seemed to be hawkish comments from the Fed. We suspect than many participants came into today with their bomb shelter gear on and when a death drop didn’t materialize, scrambled to reverse shorts or add long exposure.

While it is nice to see the major averages in higher territory we can’t help but feel that the positive news flow that would keep a market moving has slowed to a halt. That doesn’t mean a wall of worry can’t take us higher, but we simply feel that stocks, particularly the small caps, are very extended and in need of  breather.

You may scan through your charts, review the indices or watch the media and see nothing of the sort, but our gut feel has helped us many times and we have learned to respect the feeling that it is time to take some money off the table.

We trimmed positions today and added some hedges, should our thesis be incorrect, we will unwind these hedges and look to deploy our cash in areas that look prudent for entry. As we scan through our watch lists many have already produced substantial gains and look to be extended, at least for the time being we’re more inclined to be selling than buying.

Have a good evening.