Buy everything? Algorithms likely to buy stocks, bonds and gold into early February, strategist says

[mwai_chat context=”Let’s have a discussion about this article:nnTraders are about to encounter a batch of top-tier events this week: a Federal Reserve policy decision and details of Treasury’s coming auction sizes, both on Wednesday, as well as Friday’s official jobs report for January.No matter the outcome of any of those events, automated trading strategies are likely to buy stock indexes, bonds and gold “in nearly every scenario” for the rest of this week and into part of next week, according to Daniel Ghali, a Toronto-based senior commodity strategist for TD Securities.That’s because professional investment managers are re-leveraging at a time of greater calm in the financial market, as seen in the Cboe VIX Index
VIX,
which measures expected volatility in the U.S. stock market, and the ICE BofAML MOVE Index that reflects interest-rate volatility in the Treasury market. Via phone on Tuesday, Ghali said managers are expected to buy stock futures, Treasurys, and gold regardless of whether those assets’ prices are falling or rising. His views are captured in the charts, shown below. TD used simulations of future price paths in equity futures, U.S. government debt and gold to map out various scenarios, and breaks down performance paths into three categories it refers to as “downtape,” “flat tape,” or “uptape.”In almost every situation but one, Ghali said commodity trading advi …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]