Let the tomfoolery begin
Greetings, marketeers!
You made it. You’re the first ones here.
First things first: Where the heck are you? Who the f are we? And why on earth should you care?
Welcome to Trading Places.
We’re just a bunch of market nerds, quants, and posers who’ve stared at enough charts we dump our portfolios at the sight of a menorah.
After years of convincing ourselves that the lines and shapes we were plotting actually meant something, we finally figured it was time to upgrade our shtick a tiny bit.
So now, we get quant intelligence to do it for us.
We built an algorithm (ooh fancy) that’s deaf to the market’s siren songs. It cuts through the BS and pinpoints Zones of interest, i.e. places on the chart where actual money comes to dance.
Think of it as a Limitless pill for your stock, currency, and crypto plays—scanning the markets in real-time and determining where the action’s at.
So fasten your fanny packs. The market waits for no one. Let this tomfoolery commence.
Incoming!!!
This week’s hot zones.
1. Paychex, Inc. (PAYX)
Technology • Software - Application • USA • NASD
After a snooze fest within the 124-129 zone for the first half of 2024, PAYX has—very much unlike your paycheck—trended upwards since July.
Recently it’s been hanging around another major support zone while its RSI is steadily creeping back down to the 30s.
Normally, we’d say that this uptrend is likely to kick back up, BUT:
Paychex is due to release its next earnings report in 2 days’ time.
We do not forecast earnings reports, nor do we want to analyze forecasts.
Zones aren’t immune to earnings report-related shock.
So until then, y’all are on your own.
2. Crown Castle Inc. (CCI)
Real Estate • REIT - Specialty • USA • NYSE
After a months-long bloodbath that broke through three long-term zones in quick succession, CCI has found its way back to another zone at the 95-99 levels.
Despite encountering a record-strong sell-off fiesta yesterday, the stock has managed to hold steady within the zone. And with RSI already at rock bottom, it could be hinting at a potential reversal.
Also, pretty good divvies (~6%) ahead. Hard to count that out.
3. Lockheed Martin Corp (LMT)
Industrials • Aerospace & Defense • USA • NYSE
How timely for a war stock to show up in our scanner.
LMT has been teetering at the top of a support zone for a couple days now, so there’s still some leeway for this stock to drop.
But with RSI now at cataclysmically undersold levels, LMT and its defense contracts could be primed for a bounce, and a run back up to the 600 range.
Barring Elon launching autonomous F-35s, of course…
WTF are Zones, anyway?
Zones are key price levels where the market has reacted strongly in the past—such as sharp reversals or sudden swings.
They’re areas where actual supply and demand met in the past, and likely will meet again.
“Why are these significant?”
Well, it all comes down to three key principles. We like to call them The Principles of:
You Jump, I Jump (aka psychology)
Traders are aware that others are watching these levels (zones) too. With everybody paying attention, this creates a self-fulfilling prophecy where everybody acts in anticipation of everybody else’s actions.
Markets Gonna Market ¯\_(ツ)_/¯ (aka technical factors)
If the first price rejection at the top of a zone was violent, it’s likely that buyers who entered at that level are now holding losses.
But with each retest, the rejection weakens, as there are fewer buyers remaining underwater. This weakens that resistance (or support for all you short-sellers), and could eventually lead to a break through.
Killer Whales (aka institutional plays)
Big players need liquidity in order to place massive orders without moving the market against themselves. So they wait for these zones, knowing a lot of us small fry (retail traders) will come to play.
This allows them to buy low or sell high without causing a lot of waves.
But remember: Zones are NOT guarantees but rather regions of increased probability for market moves. So always, ALWAYS use proper risk management.
Trading Places: Launch coming soon!
Stop obsessively refreshing your charts like it’s your ex’s Instagram.
By combining historical patterns with real-time market data, Trading Places identifies zones and assigns probabilities to each one—helping traders spot potential plays with higher chances of success.
It automates all of the curation, chart-plotting, and alerting for you, so you can actually have a life (or at least pretend to)!
Stay tuned!
Disclaimer: This isn't financial advice. If you lose money, it’s probably because you didn’t read the disclaimer. Also, past performance doesn’t guarantee future results. Seriously, don’t @ us.