Strong day...

4:30pm EST I thought for sure that the market was going to head lower today. I did take some long trades today as the information changed, but my bias led me to take profits more quickly than I might have otherwise. The action was encouraging for the bulls with a strong rally into the close. as IBD would put it, we are in a "confirmed rally". This does not mean that buying anything and hoping for the best is ever a good strategy, but I think a net long portfolio makes some sense here.

I think the AIG bonus controversy is amazing. I have a couple of questions about it. Add a comment if you can help me understand them.

-Who earns a bonus for a company that lost 20 BILLION PER MONTH last quarter? "Retention bonuses" or not?

-How is "contract law" so screwed up that a pro athlete can sign a 5 year contract and leave after 2 years and union workers can have a labor contract yet they have to give up health care and pensions, yet we can't do anything to take back the cash paid out to AIG?

-If you are one of the people who got the bonuses, how do you sleep at night? How do you look your neighbors who are funding your bonus in the eye?

-Why is AIG being so secretive and not cooperating with Andrew Cuomo the New York Atty General? What is there to hide if everything you are doing is above board?

-How can AIG tell people that "these people need to be retained" when (A) they ran the company into the ground, and (B) most have non-compete clauses in their "ironclad" contracts, and (C) the labor market is weak at best for qualified individuals matter the less people who brought down the largest insurer in the world?

The insanity of this situation stuns me. Until we can get government out of our companies, I can tell you for sure there will be more of this. Until next time, stay low risk..