TD Ameritrade's Investor Movement Index: IMX Breaks Highest Level in its Four-Year History Third Month in a Row
March 10 2014 - 12:30PM
Business Wire
IMX increased for a fifth consecutive month,
the longest upward trend in nearly two years
TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer
subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD), is
today revealing the Investor Movement Index® reading for February
2014. The Investor Movement Index, or the IMXsm, is a proprietary,
behavior-based index created by TD Ameritrade that aggregates Main
Street investor positions and activity to measure what investors
are actually doing and how they are positioned in the markets.
The February 2014 Investor Movement Index for the four weeks
ending February 28, 2014, reveals:
- Reading: 5.74 (compared to 5.66 in
January)
- Trend direction: Positive
- Trend length: 5 months
- Score relative to historic ranges:
High
February’s IMX reading rose for the fifth consecutive month and
above the previous record high of 5.66 set in January 2014. TD
Ameritrade clients were well positioned for the rally in February
as they built up market exposure in January when the S&P 500
declined. The IMX has increased for five consecutive months, which
is the longest upward trend in nearly two years. Since tracking of
the IMX began in January 2010, the longest run of consecutive
increases was the six months ending in March 2011. Net buying
activity in individual equities was concentrated in technology and
mixed across other sectors. Clients appeared to be focused on
stock-picking strategies, as net buying activity in U.S. ETFs and
mutual funds was lower than in previous months. International stock
mutual funds and ETFs were net sold amidst economic concerns in
emerging markets.
Net buying activity within the technology sector favored Google
(GOOG), AT&T (T), Twitter (TWTR), and Verizon (VZ). TD
Ameritrade clients appeared to treat volatility in widely held
names – including General Electric (GE), Amazon (AMZN), and Coca
Cola (KO) – as an opportunity to build up positions. Net buying
activity also favored Chevron (CVX), Kinder Morgan (KMP), and Sea
Drill (SDRL); each of these energy-related companies were trading
at multi-month lows. While clients were net buyers overall in the
technology sector, they were net sellers of some widely held names:
Nokia (NOK), Alcatel (ALU), Cisco (CSCO), and Yahoo (YHOO).
Caterpillar (CAT) and Green Mountain Coffee Roasters (GMCR) both
saw new highs in February, which clients seemed to view as an
opportunity to sell. Clients also lightened positions in Apple
(AAPL), which recently bounced higher off of a multi-month low.
“We’ve seen our clients continue to rotate into sectors that
were underperforming relative to the S&P 500 in anticipation of
their performance improving,” said JJ Kinahan, chief strategist, TD
Ameritrade. “Volatility has become a time of opportunity rather
than panic.”
The IMX value is calculated based on a complex proprietary
formula. Each month, TD Ameritrade pulls a sample from its client
base of 6 million funded accounts that includes all accounts that
completed a trade in the past month. The holdings and positions of
this statistically significant sample are evaluated to calculate
individual scores, and the median of those scores represents the
monthly IMX.
For more information on the Investor Movement Index, including
historical IMX data going back to December 2010, to view the full
report from February 2014, or to sign up for future IMX news
alerts, please visit www.tdameritrade.com/IMX. Additionally, TD
Ameritrade clients can chart the IMX using the symbol $IMX in
either the thinkorswim or TD Ameritrade Mobile Trader
platforms.
Inclusion of specific security names in this commentary does not
constitute a recommendation from TD Ameritrade to buy, sell, or
hold.
Past performance of a security, strategy or index is no
guarantee of future results or investment success.
Historical data should not be used alone when making investment
decisions. Please consult other sources of information and consider
your individual financial position and goals before making an
independent investment decision.
The IMX is not a tradable index. The IMX should not be used as
an indicator or predictor of future client trading volume or
financial performance for TD Ameritrade.
For the latest TD Ameritrade news and information, follow the
Company on Twitter, @TDAmeritradePR.
About TD Ameritrade Holding CorporationMillions of
investors and independent registered investment advisors (RIAs)
have turned to TD Ameritrade’s (NYSE:AMTD) technology, people and
education to help make investing and trading easier to understand
and do. Online or over the phone. In a branch or with an
independent RIA. First-timer or sophisticated trader. Our clients
want to take control, and we help them decide how — bringing Wall
Street to Main Street for more than 37 years. An official sponsor
of the 2014 and 2016 U.S. Olympic and Paralympic Teams, TD
Ameritrade has time and again been recognized as a leader in
investment services. Please visit TD Ameritrade’s newsroom or
www.amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org)/NFA
(www.nfa.futures.org)
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TD Ameritrade Holding CorporationFor Media:Beth Evegan,
201-369-5930Communications & Public
Affairsbeth.evegan@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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