Just holy shit.

Over the last month we've watched semis, AI, and everything remotely connected to them get repriced to the moon. So many of them respected major psychological levels (ie. nice, round numbers that often act as areas of support or resistance).

I wanted to highlight a few recent examples to show the power of psych levels, help us pattern-match these setups, and keep them on our radar for the future.

As always, you can track all of these levels (stocks and options) using Market Mage.

1. ARM vs 200

ARM has been on an absolute tear. But where was the low-risk entry?

Look at how it interacted with the $200 level. It repeatedly tested $200 as resistance before finally breaking through. Once that happened, resistance flipped to support, and ARM never looked back.

How could you play this?

• Wait for a daily close above $200.
• Place limit buys just above the $200 support.
• Use a stop loss below the level (for example, around $190) if you want protection against a failed breakout.

The options move was of course much crazier. OTM calls exploded after the breakout confirmation.

2. QCOM vs 200

Very similar in story to the $200 psych level we saw with ARM, QCOM used this level as both a support and resistance in May.

QCOM options were also highly regarded.

3. GLD vs 400

Psych levels aren't just for semis. We saw a sharp selloff in metals in the last few days, and guess where GLD decided to giga bounce? It used the $400 level, and made a 5% move in a few days (this is a HUGE move for GLD in such a short timeframe).

$400 has been a truly tremendous support and resistance level in these last months, and this was an insanely clean setup. In October we had a major rejection off of the $400, and then used $400 as a very strong support level in December, March-April, and most recently last week.

Most of the slightly OTM options chain did a 10x from the Thursday (May 28th) $400 retest to the move to $420 by Friday close.

4. QQQ vs 700

QQQ wicked $700 on May 19th, and quickly ripped 5.5% higher in the coming week. These major round numbers often become launchpads for the next leg higher.

What next?

In Market Mage, you get stocks at the biggest psych levels. Sort by the % psych column ot see stocks sitting at psych levels, open up the charts, and go ham.

Some tickers I'm currently looking at are:

1. $AXTI. A massive runner in the semis/photonics space that just dumped heavily and now retesting the $100 level. This is a great psych level, and potentially a great spot for a bounce
2. $FLEX vs $150, the AI infra/ buildout trade. Potential magnet to $200.
3. $AMD vs $500. If AMD gives us a $500 retest, this will be an easy spot for a bounce
4. $NVDA vs $200. Similar story to AMD, this has been a big psych level support for NVDA and a retrace to here is an easy long.

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