The performance of the A-shares today was quite interesting—a gap-up at the open followed by a rapid pullback, with the opening gap being filled immediately. The gap at 3927 points above remains a hurdle, but judging from the flow of funds, it’s only a matter of time before it’s broken through.

**Why didn’t the weekend’s positive news lead to a big rally?**

First, we have to admit that there is indeed pressure at the 3927-point level, and the main players don’t want to force a breakout. More importantly, funds are deliberately controlling the pace—when the market falls, there’s support; when it rises, brakes are applied. The index has already touched 4000 points this year, so the last month will most likely be a period of consolidation. Insurance and brokerages, which surged last Friday, gave back some gains today. Without these two heavyweight sectors making a push, the market can’t accelerate.

**But the logic for filling the upper gap hasn’t changed**

The reason is simple: real incremental funds are still in the market, and the current volatility is giving them a chance to accumulate. Trading volume also supports this—after dropping below 1.6 trillion, it has rebounded, and the volume-price relationship is looking healthy. Emotion-wise, there were not many stocks hitting limit-down today. Although the index’s pullback led to broad-based adjustments, the bullish logic for the two main lines—finance and technology—remains clear. Technically, both the 5-day and 10-day moving averages are rising, and we’re just waiting for a breakout above the 20-day moving average to confirm the trend.

**Worried about missing out? No need**

Year-end markets are known for being choppy. Even if you miss a big rally one day, there will be plenty of opportunities during subsequent pullbacks. This kind of slow upward trend is actually laying the groundwork for the spring rally next year. It’s not too late to get in now.

**New fund manager compensation rules will strengthen herd behavior**

The policy released last weekend is noteworthy—now that fund managers’ compensation is closely tied to performance, herd behavior will become even more pronounced. Poor performance directly affects income, so institutions will be more inclined to collectively push up NAVs. Today’s flows into the tech sector are a clear example; brokerages and insurance also enjoy policy support, and sub-sectors like lithium in new energy are key institutional positions.

The 100-yuan stock index rose 2% today, with high-priced stocks making moves—this is the result of institutions clustering together. The trend of “de-retailization” in A-shares is becoming more obvious. For individual investors, you can either buy index products to follow the general direction, or look for trending stocks within the main lines of tech, finance, and new energy. You don’t necessarily have to chase 100-yuan stocks; picking the right sector is more important.

**In summary:** The market is fine, and the target of filling the upper gap remains. For now, it’s about holding your positions and waiting patiently. The warm-up for the spring rally has already begun; just follow the main institutional trends and accept the volatility.