USA100
October 7, 2024
Risk Disclaimer: The example below is for illustrative purposes only and is based on price movements derived from Contracts for Difference (CFDs). The calculations reflect hypothetical outcomes using historical or specified price data for the relevant instrument on the stated date and are not indicative of future performance. Any reliance placed on this material is strictly at the user’s own risk.
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 including Apple, Google, Nvidia, Meta, and Microsoft.
RECENT TREND:
- THE NASDAQ 100 IS NOW UP MORE THAN 80% FROM ITS OCTOBER 2022 LOWS: The Nasdaq has sharply rallied from October 2022 lows, as the tech sector continues to remain the best-performing sector in the United States. The Nasdaq rally has outpaced both the S&P500 and the Dow Jones Industrial index since October 2022.
US FEDERAL RESERVE HAS BEGUN YET ANOTHER INTEREST RATE CUT CYCLE:
- BREAKING (SEPTEMBER 18): FEDERAL RESERVE ANNOUNCED ITS FIRST INTEREST RATE CUT SINCE 2020. US Federal Reserve decided to cut its benchmark interest rate by 0.50% points on September 18, to 5.00% from the previous 5.50%. The bank expects to cut rates two more times in 2024 to slash its benchmark rate to 4.5% by the end of 2024. The bank expects rates to fall to 3.5% in 2025 and further down to 2.9% in 2026. NEXT FED INTEREST RATE DECISION: November 7, 2024. As of October 7, the market sees a high probability rate for a 25-basis points interest rate cut. This could bring current rates of 5.00% down to 4.75%.
NEXT ECONOMIC EVENTS:
- THURSDAY, OCTOBER 10 AT 13:30 GMT+1: US INFLATION (CPI) (SEPTEMBER). US Inflation has continued falling in the US with August’s CPI showing a rate of 2.5% (down from previous 2.9%), which was the lowest rate since April 2021. Analysts expect to see a further decline in September to 2.3%. Falling inflation combined with a worsening labor market in the USA has recently increased the chances for continues interest rate cuts at the Fed meetings head, including the next one in November.
NEXT COMPANY EVENTS:
- US STOCK MARKET: Q3 EARNINGS SEASON
OCTOBER 11- NOVEMBER 15. The new earnings season in the US is expected to kick off with the banking sector in mid-October, while some large companies such as Tesla, Meta, Microsoft, Apple, Amazon are expected to report their Q3 earnings results by the end of October.
LAST EIGHT QUARTERLY EARNINGS SEASONS: THE ARTIFICIAL INTELLIGENCE (A.I.) EUPHORIA HAS CREATED ON AVERAGE A 3.76% INCREASE FOR THE USA100 DURING THE EARNINGS SEASONS. The table below illustrates price reactions of the three major US stock indices. On average, the USA100 index has risen by 3.76% each quarterly earnings season since Q3 2022. Over the same period, the USA500 index rose 3.00%, while the USA30 index climbed around 3.04%.
Data Source: MetaTrader 4 Platform
Please note that past performance does not guarantee future results
USA100, October 7, 2024
Current Price: 20,100
|
USA100 |
Weekly |
|
Trend direction |
|
|
21,500 |
|
|
21,000 |
|
|
20,600 |
|
|
19,650 |
|
|
19,500 |
|
|
19,350 |
Example of calculation based on weekly trend direction for 1.00 Lot1
|
USA100 |
||||||
|
Profit or loss in $ |
14,000 |
9,000 |
5,000 |
-4,500 |
-6,000 |
-7,500 |
|
Profit or loss in €² |
12,749 |
8,196 |
4,553 |
-4,098 |
-5,464 |
-6,830 |
|
Profit or loss in £² |
10,700 |
6,878 |
3,821 |
-3,439 |
-4,586 |
-5,732 |
|
Profit or loss in C² |
19,013 |
12,223 |
6,790 |
-6,111 |
-8,148 |
-10,186 |
1. 1.00 lot is equivalent of 10 units
2. Calculations for exchange rate used as of 13:00 (GMT+1) 07/10/2024
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.
