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.
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 5.9% 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 USA500 given its current weighting.
PRICE ACTION:
- USA500 INDEX HIT AN ALL-TIME HIGH OF 6,165.82 (FEBRUARY 19, 2025). The index has traded around 5,880 and if a full recovery takes place, USA500 could rise around 4.86%. Although, the index could decline in price as well.
USA500, May 26, 2025
Current Price: 5,880
|
USA500 |
Weekly |
|
Trend direction |
|
|
6,600 |
|
|
6,400 |
|
|
6,100 |
|
|
5,700 |
|
|
5,600 |
|
|
5,550 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
USA500 |
||||||
|
Profit or loss in $ |
7,200 |
5,200 |
2,200 |
-1,800 |
-2,800 |
-3,300 |
|
Profit or loss in €² |
6,327 |
4,569 |
1,933 |
-1,582 |
-2,460 |
-2,900 |
|
Profit or loss in £² |
5,316 |
3,839 |
1,624 |
-1,329 |
-2,067 |
-2,437 |
|
Profit or loss in C² |
9,878 |
7,134 |
3,018 |
-2,469 |
-3,841 |
-4,527 |
- 1.00 lot is equivalent of 10 units
- Calculations for exchange rate used as of 10:40 (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.