TD Ameritrade's Investor Movement Index: IMX Holds Steady Heading into Summer
June 09 2014 - 12:30PM
Business Wire
Following April’s slight pull back, investor
activity remains relatively unchanged
TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer
subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD), is
today releasing the Investor Movement Index® reading for May 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 May 2014 Investor Movement Index for the four weeks ending
May 30, 2014, reveals:
- Reading: 5.69 (compared to 5.67 in
April)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
High
Following April’s IMX report, which showed a decline for the
first time in seven months, the IMX remained relatively unchanged
in May. The IMX stayed at the high end of its historical range, but
was comparatively flat month over month, advancing by 0.02 in May
to 5.69. The IMX remained stable month over month as both implied
and historical volatility remained low. The S&P 500 was range
bound for most of the period, but eventually rose to a new all-time
high and closed the period 3% higher than where it started.
Although the S&P climbed back to record levels, small-cap names
(measured by the Russell 2000) have been more volatile. The Russell
2000 traded lower and approached the 10% correction range intra
month. TD Ameritrade clients dialed back positions in names that
recently popped and were picking up stocks that had been under
pressure, which included some previous momentum names.
“Clients have seen price dips as a buying opportunity while
taking profits in popular names that saw pops, like Apple (AAPL)
and Cisco (CSCO),” said JJ Kinahan, chief strategist, TD
Ameritrade. “With no major changes, it seems clients are working
the market to set up positions and take profits but still with an
overall bullish sentiment.”
TD Ameritrade clients were net buyers of many names that saw
drops in price during the May IMX period. In the Technology sector
Twitter (TWTR) and Yahoo (YHOO) both saw dips and were net buys.
Net buys in the Services sector included Whole Foods (WFM) and
Amazon (AMZN). Clients were net buyers of the Financial sector
overall with Bank of America (BAC) and Prospect Capital (PSEC) the
most popular purchases in the group.
Apple (AAPL) ended May over 20% above its April 2014 low and was
the largest net sell as clients seemed to be lightening positions
and taking profits. Clients were net sellers of Coca Cola (KO) as
the stock was range bound in May after spiking higher in April
2014. Additional securities that saw pops in their price during the
period and were popular net sells: Cisco (CSCO), Intel (INTC) and
JC Penney (JCP). Several Services sector issuers were also net sold
including Sirius (SIRI), McDonalds (MCD) and American Airlines
(AAL).
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 May 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.
Source: TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation
Millions 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 39 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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