per-chart, page-332

G'day Insulsa.

I have not read what Dalts has kindly posted for you as yet, but I must say my thoughts are simply that people read, or otherwise become over confident, in their belief that the stock will zoom up and the fear of missing out becomes paramount in their minds.

Therefore they race in to buy when they see the price increase a bit.
We all know that when fear takes over in ones mind, we do irrational things that we will probably regret later.

I spent probably 35 years in sales in one way or another, and I feel I have a good grasp on the way people act.
Mind you, we all spend most of our lives in sales in one way or another just navigating family life and general life. lol

Just don't take too much notice of what I say by acting too much upon my posts.

PER is well along in it's development and so may start acting a little outside my thoughts on "Gaps".

However, having said that, I still think what I say is valid.

The thing with PER is also that the little surprise that the market received recently that started the current weakness in the sp, could well repeat again as this sort of delay is common in spec stocks.
Things never go to plan or to cost estimates. Just ask the QLD Government at the moment.
This would create another similar sp weakness and close gaps.

I have been bitten on the arse so many times by stocks that I never now go into the woods without my bear spray, so to speak.

If you go back through the charts of any spec company on the ASX you will be hard pressed to find a company that does not comply with my theory.
It is worth the time and effort.

There will always be exceptions that others will gleefully point out, but I still say 95% of the time the gap will be filled sooner or later.

Good luck with it all.

Lockitt