Put your blinders on! (Three new zones) 25 Feb 2025
With how shaky the market's looking, you're probably gonna need these
It feels like everyone’s starting to sense it. That weird, creeping feeling that something’s… off.
Yeah, the market’s been holding up fine. Yeah, JPow’s out here talking about how we’re in a “good place.” And yeah, the VIX is looking like it’s been popping Vicodin.
But there’s this nagging sense that the music’s about to stop. That this whole joyride is just waiting for something to tip it over.
And we might not even have to wait so long…
But, you already know the drill: Trade the market you have and whatnot. So despite this potential powder keg, the game goes on.
You just have to put your blinders on and choose your battles more wisely.
And one good way to do that is by trading with zones. And here’s three of ‘em.
What’s in this issue:
• Who we are
• This week’s three new hot zones
• What are zones?
But wait… who are you people and what am I doing here?”
Welcome to Trading Places.
We’re just a bunch of market nerds, quants, and posers who’ve spent years deciphering price action, identifying high-probability setups, and questioning our life choices every time a chart pattern didn’t play out as planned.
After years of refining our approach, we built a quantitative system that cuts through the BS. Our algorithm highlights key market Zones—areas on the chart where real money moves, not just speculative noise.
Think of it as an edge—scanning stocks, currencies, and crypto in real-time to pinpoint where your attention is required.
Every week, we share these insights with you. No fluff, no hype—just actionable setups backed by real market dynamics.
This week’s hot zones!
Here’s what our zone algo picked up for you today:
Apple Inc. (AAPL)
Technology • Consumer Electronics • USA • NASD
AAPL is back at a familiar battleground—retesting a zone that, just last month, killed its hopes of a run at a new all-time high.
Though very new, that big red rejection on January 31—along with the two long wicks from the past two days—just shows that the January 2025 zone does not mess around.
If the zone holds, we could see AAPL plunge back to its June 2024 zone—a potential ~12% drop.
However—you see the thing with zones is, while it’s often a very good way to tell how prices could move… it can get bulldozed by short-term hype.
So if NVDA drops a monster earnings report, AAPL could get swept up in the rising tide, and lifted all the way back to ATH levels instead.
KBR Inc. (KBR)
Industrials • Engineering & Construction • USA • NYSE
KBR’s month-long tumble looks like it has finally found its bottom. At least for now.
Yesterday’s long lower wick is hinting that this rebound off the November 2021 zone might be legit.
Add in a spike in buying volume spike and an RSI still sitting at 31, and there’s a strong case for a reversal.
If KBR manages to make it back to its May 2023 zone, the returns would be massive. About 20% for this move up.
Verisign Inc. (VRSN)
Technology • Software - Infrastructure • USA • NASD
VRSN is one of the stocks found by our zone scanner using its new “Extreme RSI” filter.
It’s pretty self-explanatory, really: it basically hunts for stocks at or nearing key zones while also being extremely oversold or overbought.
It’s a nifty new feature for discovering potentially explosive moves.
And VRSN is exactly the poster child for this filter.
One, it’s very near the upper edge of its July 2021 zone (in fact it even tried to penetrate it the other day).
And two, its RSI is at 78.7 (it even peaked at 85 last week). The stock has not been this far deep in overbought territory since 2021.
The last time that happened, VRSN experienced a quick run up to an ATH (a 4.5% move), before sliding down nearly 19%—all in a span of two months.
Right now, this is a wait-and-see setup.
A break of the July 2021 zone could kickstart another rally to previous-high levels, which you could ride for a 10% gain…
But a zone breakdown could have the stock plummeting down to its November 2018 zone—for a whopping 20+%.
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:
When I Dip, You Dip, We Dip (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. This shouldn’t be news to you.
Is it an indicator on TV