TD Ameritrade’s Investor Movement Index: IMX Breaks Highest Level in its Four-Year History Fourth Month in a Row
April 07 2014 - 12:30PM
Business Wire
IMX increased for a sixth 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 March
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 March 2014 Investor Movement Index for the four weeks ending
March 28, 2014, reveals:
- Reading: 5.87 (compared to 5.74 in
February)
- Trend direction: Positive
- Trend length: 6 months
- Score relative to historic ranges:
High
March’s IMX reading rose for the sixth consecutive month and
above the previous record high of 5.74 set in February 2014. The
S&P 500 climbed to a new record early in March, but then took a
few steps down to eventually close the month relatively flat
compared to February. Overall, TD Ameritrade clients were net
buyers in March as they continued to increase their exposure to the
equity markets. Net buying activity was strongest during the second
week of March, when the S&P 500 declined amid rising political
tensions over Crimea and concerns of a potential economic slowdown
in China. The technology and healthcare sectors were popular buys,
while consumer goods stocks were net sold. Net selling in mutual
funds and ETFs that focus on International stocks continued as
well.
Biotech and social media stocks were volatile in March, and
clients seemed to view the declines as a buying opportunity for
some specific names, including Gilead Sciences (GILD) and Facebook
(FB). Green energy companies – such as Fuel Cell (FCEL) and Plug
Power (PLUG) – were also popular buys in March. Well-known
dividend-paying names including Kinder Morgan Energy Partners
(KMP), Kinder Morgan Inc. (KMI), and Verizon (VZ) saw net buying
activity; all three had dividend yields over 4%.
Selling in the consumer goods sector was largely led by net
selling in Apple (AAPL), which was range-bound over the month.
Issuers trading at or near their 52-week highs were also popular
sells. These included Caterpillar (CAT), Alcoa (AA), and Microsoft
(MSFT). Although clients were net buyers of the technology sector
overall, some widely held technology names were net sold, including
Intel (INTC) and International Business Machines (IBM).
International Business Machines (IBM) has recently risen from the
low end of a two-year range.
“Our clients have been dialing up equity market exposure and
participating in the rally every step of the way,” said JJ Kinahan,
chief strategist, TD Ameritrade. “This is the longest consecutive
upward trend we have seen in the IMX since March 2011.”
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 March 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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