The Condition of the Market
The last few months have seen poorer than expected performance of Canadian stocks which dropped binary traders in a precarious situation. But as of now the stocks in the Canadian market are in a well position as the gold producers have exhibited a good performance. Binary traders are seeing gains in context of the good performance of the stocks and are ready to take home some hefty profits.
The Behavior of the Stocks
Most of the stocks in the Canadian market staged a rise to the delight of binary traders. The Barrick Gold Corporation and the Detour Gold Corporation both added almost 7 percent to their respective values on positive news about the Federal Reserve’s stimulus package. Talisman Energy also advanced by 1.5 percent after the company announced that it was going to reduce stakes in some of its properties. Silver Standard Resources Inc. added 6.2 percent to finish at C$ 8.36 and the Silvercorp Metals Inc. rallied 6.3 percent to finish at C$ 3.21. The Standard & Poor’s/TSX Composite Index in Toronto added 13.94 points to finish at 12,746.55. The index has advanced 2.5 percent so far this year and the trading volume was higher by 11 percent than the 30 day average.
According to analysts the main reason behind such a good performance of stocks in Canada is the speculation that the Federal Reserve in the United States would continue with its stimulus package as the U.S. economy has failed to show signs of improvement till now. The rise in the level of job claims and the contraction of the U.S. economy both surpassed the estimated level, thus creating a serious concern for the country’s economy. As a result the Federal Reserve is likely to keep the pace of its stimulus packages in order to bring US economy on track. This has cast a positive impact on the Canadian market that has shown some good signs of late.
Binary traders are optimistic about the situation and many of them opine that the market in Canada would soon be on the brighter side as the stocks have already started to show healthy signs. However, traders need to keep a close watch on the developing market conditions in order to continue making profits.