USA500 Weekly Special Report based on 1.00 Lot Calculation:
USA500 INDEX:
- WHAT IS A STOCK INDEX: According to Investopedia.com, a stock index measures the price performance of a basket (group) of stocks using a standardized methodology. The S&P 500 Index is one of the world's best-known indexes and one of the most commonly used benchmarks for the stock market.
- COMPONENTS: USA500 includes 500 companies, including Tesla, Apple, Google, Nvidia, Meta, and Goldman Sachs.
U.S. Q1 EARNINGS SEASON (April 11 – May 15):
- USA500 INDEX COMPANIES DURING THE LAST 10 QUARTERLY EARNINGS SEASONS: 76% OF THE COMPANIES ON AVERAGE HAVE BEAT EARNINGS ESTIMATES. When a company exceeds earnings expectations, this could indicate stronger-than-anticipated performance, boosting investor confidence.
Data Source: factset.com
Please note that past performance does not guarantee future results
Q1 EARNINGS CALENDAR: Q1 Earnings Report dates for some of the most know tech companies in the world
- PALANTIR: 05/05/2025 – AFTERMARKET
- AMD: 06/05/2025 – AFTERMARKET
- UBER: 07/05/2025 – PREMARKET
- ARM: 07/05/2025 – AFTERMARKET
- NVIDIA: 28/05/2025 – AFTERMARKET
US FEDERAL RESERVE HAS BEGUN YET ANOTHER INTEREST RATE CUT CYCLE:
- FEDERAL RESERVE INTEREST RATE AT 4.5%. The US Federal Reserve decided to cut its benchmark interest rate by 0.50% points in September, 0.25% points in November, and 0.25% in December. The bank expects to cut rates two more times in 2025 to slash its benchmark rate to 3.9% by the end of 2025. The bank expects rates to fall to 3.40% in 2026 and further down to 3.10% in 2027.
- NEXT FED INTEREST RATE DECISION: May 7, 2025. Markets have recently raised their expectations for three interest rate cuts in 2025, which could eventually bring rates down to 3.75% from the current 4.5% (Source: CMEGROUP.COM).
PRICE ACTION:
- USA500 INDEX HIT AN ALL-TIME HIGH OF 6,165.82 (FEBRUARY 19, 2025). The index has traded around 5,660 and if a full recovery takes place, USA500 could rise around 9%. Although, the index could decline in price as well.
- USA500 HAS TESTED ITS LOWEST PRICE IN 15 MONTHS (4,829.62). The index has recently retreated from its all-time high of 6,165.82, hitting its lowest rate in 15 months on April 6, 2025 (4,829.62)
USA500, May 5, 2025
Current Price: 5,660
USA500 |
Weekly |
Trend direction |
|
6,500 |
|
6,100 |
|
5,850 |
|
5,500 |
|
5,400 |
|
5,300 |
Example of calculation based on weekly trend direction for 1.00 Lot1
USA500 |
||||||
Profit or loss in $ |
8,400 |
4,400 |
1,900 |
-1,600 |
-2,600 |
-3,600 |
Profit or loss in €² |
7,405 |
3,879 |
1,675 |
-1,410 |
-2,292 |
-3,174 |
Profit or loss in £² |
6,328 |
3,315 |
1,431 |
-1,205 |
-1,959 |
-2,712 |
Profit or loss in C² |
11,586 |
6,069 |
2,621 |
-2,207 |
-3,586 |
-4,965 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 10:00 (GMT+1) 05/05/2025
There is a possibility to use Stop-Loss and Take-Profit.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique could protect the profit.