USA100 Weekly Special Report based on 1.00 Lot Calculation:
USA100 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 NASDAQ 100 Index is one of the world's best-known indexes and one of the most commonly used benchmarks for the stock market.
- COMPONENTS: USA100 includes 100 companies, many of them dealing with tech and A.I., such as Apple, Google, ARM, Nvidia, Meta, Microsoft, Amazon, etc.
GEOPOLITICS: US TRADE NEGOTIATIONS HAVE BEGUN
- BREAKING (MAY 25): U.S. DELAYS 50% TARIFFS ON E.U. IMPORTS UNTIL JULY 9. President Trump initially proposed 50% tariffs on all European Union imports starting June 1 but agreed to postpone the measure after a call with EU Commission President von der Leyen. Both sides will use the extended deadline to negotiate a potential trade agreement before July 9.
- NEWS (MONDAY, MAY 12): U.S. AND CHINA AGREED TO REDUCE TARIFFS ON EACH OTHER FOR THE NEXT 90 DAYS. The United States cuts tariffs on Chinese goods from 145% to 30% for 90 days. China lowers tariffs from 125% to 10% for all US products next 90 days.
US EARNINGS CALENDAR:
- NVIDIA: WEDNESDAY, MAY 28, AFTER MARKET. Nvidia is expected to print $43.25 billion in revenue (a new record high), up 10% from Q4’s $39.33 billion, and up around 66% from the same period last year ($26.04 billion). Nvidia is expected to print $22.561 billion in net income (a new record high), up around 2% from Q4’s $22.11 billion and up around 51% from the same period last year ($14.9 billion).
- As of May 26, Nvidia accounts for approximately 11.22% of the USA500, making it the second largest constituent in the index. Given this significant weighting, movements in Nvidia’s share price have a direct impact on the overall index performance. A positive surprise could drive Nvidia’s stock higher, which could significantly impact the USA100 given its current weighting.
CENTRAL BANKS:
- US 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.
US INFALTION CNTINUED TO FALL: US inflation (CPI) for the month of April, came in at 2.3%, its lowest rate since February 2021. April data came in lower than the expected 2.4% and lower than the one in March (2.4%). Falling inflation could encourage the Fed to consider resuming its interest rate cut cycle in 2025. - NEXT FED INTEREST RATE DECISION: June 18, 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:
- USA100 INDEX HIT AN ALL-TIME HIGH OF 22,448.90 (DECEMBER 16, 2024). The index has traded around 21,260, and if a full recovery takes place, the price of USA100 could rise around 5.6%. However, the price could decline in value.
USA100, May 26, 2025
Current Price: 21,260
|
USA100 |
Weekly |
|
Trend direction |
|
|
23,500 |
|
|
22,450 |
|
|
21,900 |
|
|
20,700 |
|
|
20,300 |
|
|
20,100 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
USA100 |
||||||
|
Profit or loss in $ |
22,400 |
11,900 |
6,400 |
-5,600 |
-9,600 |
-11,600 |
|
Profit or loss in €² |
19,691 |
10,461 |
5,626 |
-4,923 |
-8,439 |
-10,197 |
|
Profit or loss in £² |
16,525 |
8,779 |
4,722 |
-4,131 |
-7,082 |
-8,558 |
|
Profit or loss in C² |
30,727 |
16,324 |
8,779 |
-7,682 |
-13,169 |
-15,912 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 12:00 (GMT+1) 26/05/2025
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.