Slow news day (so FOUR new zones) 18 Feb 2025
Trade opportunities to help you scratch that long-weekend itch
Welcome back folks!
And if you’re one of the hundreds of traders who joined over the weekend, welcome aboard!
We hope the extra day of not-trading hasn’t made you extra eager to jump into anything with a ticker.
But we know long weekends can be a bit of an irk for some of us…
So instead of ruminating about the ponzirrific rug pull that is $LIBRA, analyzing xAI’s new contender in the ongoing AI pissing contest, or sweating over the Fed’s January meeting minutes… we’re just gonna go straight to our fresh batch of zone alerts.
We’re dropping four of them this week. So let’s dive right in.
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 has in store for you today:
Cabot Corp. (CBT)
Basic Materials • Specialty Chemicals • USA • NYSE
We’re starting off with a setup that’s got a ridiculously good R/R ratio… if it manages to bounce off its current zone.
With volume slightly growing and a bullish divergence forming, that move could come soon for CBT.
A close above $87.50, or a new higher high, could push the stock all the way up to the April 2024 zone (for a ~13% gain; 5:1 ratio), or even the August 2024 zone (for a ~23% gain; 8:1 ratio). Pretty good odds if you ask us.
BUT if the December 2023 zone breaks… then back to the $70s we go!
A big move either way.
Salesforce, Inc. (CRM)
Technology • Software - Application • USA • NYSE
In the three years it has existed, CRM’s November 2021 zone has only been broken once. It’s also had A LOT of previous retests, AND has acted as a double-top resistance in the past.
If this all sounds familiar, it’s because we’ve already covered CRM in a previous newsletter. The one from January 14, to be exact.
Back then, it had also just bounced off this exact same zone, and our first target was the November 2024 zone for a 9% return.
It did that… and then some. It had enough juice to climb up to the December 2024 zone, where a well-timed exit would’ve netted a solid 15%.
For this go-around, we’re looking at the same potential targets: November 2024 as the first stop, and December 2024 if momentum holds.
We should probably just call this the ATM zone from now on.
Fox Corporation (FOX)
Communication Services • Entertainment • USA • NASD
FOX’s 100+% uptrend is about to turn a year old.
Whether it’s because of Tubi, the election year, the eventual election winner, or just good overall fundamentals—you gotta admit, it’s pretty insane.
And right now, it’s also on the cusp of breaking its previous ATH zone. Technically, it already has, but today’s action could confirm if the breakout sticks.
If it does hold, then bulls rejoice! This uptrend definitely isn’t over, and the pipe dream of it lasting until the next election cycle is alive.
But, if the March 2019 zone proves to be stronger than it seems, then we could be seeing a pullback to the August 2018 zone—a potential 14-16% drop.
Bonus zone recap + alert: Tesla Inc. (TSLA)
Consumer Cyclical • Auto Manufacturers • USA • NASD
You might be asking, “TSLA again?”
Why yes, TSLA again.
In our last zone alert, we flagged this stock after it broke below its November 11 support. We said it could dip all the way to the August 2022 zone.
Well, it tried to—going down by as much as 7% the day following the alert and dropping into oversold territory.
Right now, TSLA is again at a pivotal point.
It’s catching its breath, back at the November 11 zone—which is now acting as a resistance.
If $360 not penetrated soon, the setup is still in play, and we’re gonna stand by our previous initial target which is the $314 zone.
Moreover, until it clears the April 2022 zone (or $385), we can safely say that the bears remain in control. So you might be seeing Tesla pop up on future bonus zones in our Substack Chat (which you should join btw).
But to those who were expecting that the 10% dip would come immediately… what can we say:
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.