He and Terranova said there's no reason to believe that investors are fearing another market correction. Najarian said if there were fear in the markets, the volatility index would be running at 30% to 40% instead of 20% currently.

Kelly said utility stocks are extremely attractive for their "nice, fat" dividend yields. "These things are never going to fail," he said.

Pisani noted that Powershares DB Commodity Index ( DBC), with a 9% gain in the past six months, as a good ETF growth play. Terranova agreed, saying it's a great ETF to own because "it's all about the emerging-market recovery."

But Cortes disagreed, arguing that the commodity trade has become extremely crowded, especially in gold. "We are going to see pain in commodities."

Pisani noted that oil hit a seven-week high today. Terranova attributed the rise to an anticipated large flow of from commodity index ETFs that want exposure to energy, especially oil. He said the oil trade will turn flat by the middle of January. Cortes said he's shorting oil because he thinks the rally has been extended.

Shifting to technology, Najarian continue to be high on chip stocks. He noted Marvell Technology ( MRVL) received a new price target of $25 from an analyst and draws 50% of its revenue for storage. He said Seagate ( STX) has fetched a price target of $22 from an analyst. He said the story behind these stocks is the growing demand for data storage.

Pisani referred to a chart from Investors Intelligence that pointed out that the bears are in hibernation to an extent not seen since 1987. Kelly said the chart made a good point, but Terranova argued that there is no evidence to suggest "we are near a top."

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