I'm betting that the market will close higher on New Year's, and here's why.
First of all, for all the fretting about how stocks may have become over-extended, the market's fantastic uptrend is still intact. This rally has been a three-year story, and the story doesn't seem to be over just yet.
(Read more: Good news: Bubble concern is at 5-year high)
In addition, there's a strong seasonal wind at traders' sails in December. Over the past 31 years, if you bought the March e-mini S&P contract on Dec. 1 and sold it on Jan. 17, you would have had 26 winners and five losers, for a conversion rate of 84 percent.