The draft of the "Regulations on Supervision and Administration of Listed Companies" released after the market closed over the weekend is, to be honest, quite strong. It hits pain points in four areas: major shareholders can no longer casually hollow out listed companies, and share reductions must be done properly; penalties for things like cooperating with fraud or illegal guarantees are maxed out; companies that voluntarily delist must ensure investor protection is in place; and any extra money or excess salaries gained from board-level fraud must be returned.

Looking at external markets, the three major US stock indexes closed solidly higher last night, and the FTSE A50 futures index also rose by 0.42%. This sets a positive tone for next Monday's market. Plus, with policy expectations from economic meetings on the table, the resonance between internal and external environments is making many people dream of new highs. But will December really bring a surprise? How high can this rebound actually go?

A few days ago, after three consecutive bearish days, market sentiment collapsed. Some were calling for a break below 3800, even predicting a drop to 3600; but after one day of rebound, some funds started blindly calling for new highs. This kind of emotional tug-of-war is pretty pointless—the technical and capital factors are there, and shouting alone won't decide things.

Previously, I gave two possible December scenarios: either the market fills the gap above first, then goes back to fill the gap below, and then rallies to new highs in January; or it first tests 3836, sees if the lower Bollinger Band at 3800 can hold, and then starts a year-end rally. Personally, I lean toward the first scenario. So during the previous adjustment, my suggestion was to use the opportunity to add positions, aiming to profit from the move after breaking through 3914. The general range I gave was 3800 to 3950.

Looking at it now, with such a dense concentration of positive news domestically and abroad, a return to 3914 seems almost certain. The key is at what high point the market will start to adjust. There are actually four gaps above waiting: 3914, 3922.58, 3931, and 3972. Many people haven't noticed the double gap at 3922.58—this is actually the real minimum target. If things are a bit stronger, you can look at the golden ratio 0.618 level, which is around 3950. If the good news exceeds expectations, the strongest move could reach 3972, but considering that liquidity will tighten at the end of the year, that's going to be quite difficult.

Overall, the likelihood of hitting new highs in December isn't great. My operational advice is: when the rebound reaches the 3923-3950 range, take profits if you should, reduce positions if you should. Keep some cash on hand for the new year—this way, you can pocket this round's gains and also have some buffer for future volatility.