While I still believe in the long and mid term story for stocks, I am getting a bit of the trader's itch that we may see a small correction and I want to take advantage of that.  I have brought my stock exposure down to about 10% from around 35%.

That's a BIG move for me.

I do NOT recommend this for investors that are not monitoring the market full time.  But, I have committed to telling you all I do, so I am fulfilling that obligation.  Also, you won't be too surprised when my performance lags dramatically if the market keeps rallying ;)

I accomplished this by buying put options expiring in June.  SPY 150 Puts to be exact.  I have stated that options are "cheap" right now and I think any major moves like this should be done with options.

I expect a small correction, so I would probably go back to 30+% exposure if we get a 2-3% move down or so.  I do not foresee more than that being possible, but again, options are cheap and they offer some protection if I am wrong and we get big moves either way over the next month.

An alternative method to do this could have been to buy TLT which has come down quite a bit from when I sold it around 118.

MHN has taken a bit of a beating so I may buy some more in the MUNI space.  Be a bit careful if you think that muni interest tax immunity will be sacrificed during the budget battle.  I don't think so, and thus I still like MHN.

JNK and HYG are still ok, but I am watching them as if they rally a bit more, then stocks are a better hold and I would reduce my weight in the high yield(junk) sector.