For the next two weeks we have two major U.S. holidays. They each happen to fall on the same day, just one week apart. This year is especially unique as the Christmas and New Years holiday's fall on a Sunday. As is usual though, market participants expect that trading volume will be well below average as traders begin to prepare, travel, and enjoy the end of year holiday's.

Typically there is very little scheduled news that you will see, and IPO markets basically shut down until the New Year. Option traders' next move doesn't come until the third week in January, so with all this inconsideration you can imagine the markets looking like a ghost town. In addition, the markets are not threatening to fall apart. This means there is no real fear for investors to walk away and enjoy the holiday.

The suggestion by most market guru's and educators at this time of year is to trade light, if at all and beware the low volume stocks. Names that already trade light should be avoided, and certainly be on the lookout for wide spreads between the bid and offer. This applies to stock traders, day traders, as well as option traders.

Now, since the Christmas and New Year's holiday's fall on a Sunday the markets will be closed on the Monday following each holiday. The day you want to watch carefully is Tuesday, January 3rd. It is at this point that all traders will be back and ready to position for the new year. Also at this point traders can take any profits they wish and not have to worry about the tax consequences until the following April. This could potentially lead to quite a push lower, or at the very least some heavy volatility.

For now, if you must trade or want to position for next year early, try and stick with the high volume ETF's that always have plenty of liquidity no matter the market conditions.