S&P 500: Buying the Potential Pullback (w/ Joe Perry)

TL;DR

Joe Perry recommends buying a pullback in the S&P 500 to $2720 with a target of $3050.

Transcript

JAKE MERL: Welcome to Trade Ideas. I'm Jake Merl, sitting down with Joe Perry, global head of business development at ForexAnalytix and former FX and futures trader at SEC and Point72. Joe, it's great to have you back on the show. JOE PERRY: Great being here, Jay. JAKE MERL: So, at the end of last year, you made some pretty bearish calls on the ... Read More

Key Insights

• 🧑‍🏭 Perry accurately navigated recent S&P 500 price action, emphasizing technical analysis and macroeconomic factors for trade decisions.
• 🏛️ Asset class correlations, such as S&P 500 with commodities like oil and currencies like the Swiss Franc, influence Perry's trade outlook.
• *️⃣ Perry's trading strategy involves patient entry at key levels like $2720, with a clear target at $3050 and risk management techniques in place.

Questions & Answers

Q: What technical indicators is Joe Perry looking at to confirm his bullish thesis?

Perry looks at the 240-minute chart and Elliott Wave perspective to confirm his bullish outlook on the S&P 500, focusing on key levels, price action around moving averages, and potential support levels.

Q: How does Joe Perry plan to enter the trade in the S&P 500?

Perry plans to buy on a pullback to $2720, aiming to establish a long position and potentially scaling into the trade with the E-Mini S&P or micro E-Mini for cost-effective entry.

Q: What factors could pose the biggest risk to Joe Perry's trade?

Perry highlights the risk of the trade breaking below $2720 due to escalating trade tensions with China impacting the real economy and potential inaction from the Fed, leading to downside pressure on asset prices.

Q: How does Joe Perry recommend managing risk in the S&P 500 trade?

Perry advocates setting a stop loss at $2670 and targeting $3050, identifying key levels and stop placement to mitigate downside risk while aiming for a profitable trade.

Summary & Key Takeaways

• Joe Perry discusses recent price action in the S&P 500, explaining his technical analysis and current outlook.

• He highlights key levels and indicators influencing his bullish stance on the S&P 500.

• Perry emphasizes the importance of monitoring macroeconomic factors and related asset class correlations for trade insights.