For the fourth straight day the market saw higher prices as global worries have faded. Despite a big drop in existing home sales the market trucked higher. Volume was below average, but given it is a holiday week it is not a surprise to see volume lower. Aside from the market pushing higher the story of the session was natural gas plunging 9 percent. Crude slid on the day too, but fears over what lower oil prices might due to producers has all but vanished. This market is back on full swing and new highs are within its reach.

This week should be quiet with Wednesday being a half day for the exchanges. Volume should continue to be on the lighter side of things, but that does not mean we won’t see higher prices. Volume is a great way to confirm higher prices, but during holiday stretches it can be skewed. Stick with the process.

The high yield markets continue to come off their lows, but how long will this last? Now with natural gas prices pushing lower it should continue to put pressure on drillers. As for HYG and JNK check out the two charts:

Biotech stocks had a tough day. IBB was down 2.56% on the day. GILD took it on the chin. CELG and BIIB were losers too. AMGN a big component of the NASDAQ was down more than 3%. A tough day for biotech stocks despite having rebounding nicely last week. It is paramount you control risk through position sizing and cutting losses. Do not fall in love with stocks. If they trigger a sell signal you simply sell out and get out. There is no use in fighting the tape.

One risk we do not see too much talked about is how low the Euro has sunk as of late. Will it cause issues going forward is anyone's guess. However, if you are exporting to Europe your goods are more expensive.

This will be a short week due to Christmas on Thursday. We do not have a fiscal cliff to deal with so we do not really expect many fireworks until everyone is back from the holidays. Stick with the plan and execute.