Hey, Ross here:
It’s the day everyone’s been waiting for.
We’ll find out later whether Powell’s going to screw it up for everybody – but I’m actually kind of positive (you’ll see why later).
With that in mind, let’s look at a stock that could be setting up for a sweet breakout.
Chart of the Day
ROOT is an app-based insurance company offering home, auto, and renters insurance in all 50 states. With a market capitalization of just over $150 million, it is below the small-cap threshold making this a micro-cap stock.
In other words – it’’s small. But it wasn’t always. The company was worth roughly $6 billion when it IPO’d in 2020 – roughly 400X larger than its current valuation.
But the stock is showing serious signs of a turnaround. There was a huge volume breakout in June when shares shot from $6 to $14 in one day.
A move that extreme needs to be digested since profit taking is almost guaranteed to weigh on the price over the short term.
After a series of shallowing retracements which I have highlighted on the chart above, ROOT is setting up for a potential breakout higher.
I want to see a break of the most recent highs near $12 to give the best odds of success.
If the breakout is valid, it should take off and not look back.
Traders could use a 10% stop to give it a little room to work – but don’t give it too much rope. Remember, this is a volatile stock that can make big fast moves in both directions.
Insight of the Day
The vast majority of traders are betting that the Fed won’t hike today – or in the next meeting.
The CME Group’s FedWatch tool analyzes the probability of Fed rate moves using 30-Day Fed Fund futures pricing data.
And according to the tool – traders are pricing in a 99% probability that the Fed will not hike today…
With only a 27% chance they’ll hike the next time in November.
This could be a great catalyst for the market’s next move upward – which is why I’m positive.
The Fed will be announcing their decision at 2 p.m. Eastern today…
Which is why I’m going live at 4 p.m. Eastern today – after Powell is done yapping…
To go over how the Fed’s decision and outlook could affect your trading right now…
As well as show you my best strategy for taking maximum advantage of the situation.
So click here to save your spot for my live session later…
Because this is not something you want to miss.
And I’ll see you inside.
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
