Answer:
Up on high I wave away but not a word can I say.
I go around in circles, but always straight ahead. Never complain, no matter where I am led.
In the forest, this blends in just right, but every December it is covered with lights. What is it?
I can move even when you are still. I can be one or many.
Inside a burning house, this thing is best to make. And best to make it quickly, before the fire's too much to take.
You use it between your head and your toes, the more it works the thinner it grows.