Caution should be the name of the game in 2010, I think. The market has recovered more than fundamentals seem to indicate is warranted. If and when the government stops printing money to 'stimulate the economy' what is going to be the economic driver? I am at a loss to find one. I suppose that if the health care bill were to be passed it might be an economic stimulus for the insurance companies and quite possibly for other health care related industries. It will however take a while for the effect to filter through the system. Unfortunately, the health insurance companies are not investor friendly. Their dividends are worse than poor. They prefer to spend investors' money buying back their overvalued stock. I can not recommend investing in such poorly managed companies.
A healthy cash reserve would not be inappropriate for a conservative investor. I know it will earn squat in interest but squat is a whole lot better than a negative return as we all learned during the first part of 2009.
If you have some profits, take a few of them now while the taking is good. Put the proceeds into your money market account and grin and bear it. Remember though that investments are based on probabilities. Even though I think the probabilities favor sitting on cash, there is a probability that I could be sadly mistaken.