Volatility's The Thing

Today was the fourth straight positive day for the market and I had a light bulb come on. I've always heard day trader's talk about the importance of volatility and I understood it's importance on a conceptual level, but after today, I really understood the importance at a more practical level.

If the market continues in the current direction, I will soon liquidate all my positions with a nice little profit. However, I will be in a 100% cash position with no real opportunities for reinvesting in the short run since all of the stocks on my list are well above the "buy price" that I've set.

So I'm faced with three options (which aren't mutually exclusive):

1. Expand my universe of desirable stocks. Of course, I'm loathe to do this to any great extent because I am risk adverse. However, I will indeed look for other conservative stocks that I might have missed during previous screenings.
2. Raise the "buy price" for the existing pool of stocks. I'm equally hesitant to do this, but I think price histories should be reviewed to see if I might have initially set the buy price too low.
3. Set on the sidelines until the market drops a bit. I'm sure I will get antsy after a while, but I think this is prudent until the next light bulb clicks on.

It will be interesting how the market goes next. Although it would be to the detriment of my long term portfolio, I find myself wishing for a major correction.