TD Ameritrade's Investor Movement Index: IMX Jumps to Second-Highest Reading Since Inception
August 04 2014 - 12:30PM
Business Wire
Investor activity makes a leap with increased
equity market exposure
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 July 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 July 2014 Investor Movement Index for the four weeks ending
July 25, 2014, reveals:
- Reading: 5.85 (compared to 5.67 in
June)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
High
The IMX remained relatively flat from April 2014 through June
2014, but then jumped higher in July and came in at 5.85, which was
near the March 2014 high of 5.87. TD Ameritrade clients increased
their equity market exposure in July as new all-time highs were hit
by major indexes including the S&P 500, Nasdaq Composite, Dow
Jones Industrials, and the Russell 2000. Volatility remained low in
the large cap indexes, as they seemed range-bound amid geopolitical
tensions related to Ukraine and the Middle East. However, the
Russell 2000 small cap index had declined 6 percent as of July 25
from the July 3 high.
“We saw individual investors increase their exposure to the
equity market in time with the major indexes at record highs,” said
JJ Kinahan, chief strategist, TD Ameritrade. “Our clients have been
engaged and logging into their accounts ready to react to the
latest earnings announcements and market events.”
Net buying activity was spread across several sectors in July,
and clients were net buyers overall. GoPro (GPRO), which held its
IPO at the end of June, was a popular buy as clients began to build
positions in it. Gilead Sciences Inc. (GILD) dipped in July, but
then continued its trend higher as clients bought shares of the
biotech firm. Clients were also net buyers of Yahoo Inc. (YHOO),
which has been range bound for the last few months. Another popular
buy was Whole Foods Market (WFM); the stock continued to trade
lower in July and some clients treated the decline as a buying
opportunity, adding shares to their portfolios.
Although clients were net buyers overall, both the technology
and financial sectors were net sold, and selling activity was
similar to last month. Within the technology sector many clients
were net sellers of Intel Corp (INTC), Facebook (FB), CISCO Systems
(CSCO), and Microsoft Corp. (MSFT). Selling activity in the
financial sector included Bank of America (BAC) and Citigroup (C).
However, each of these technology and financial sector stocks
continue to be widely held by TD Ameritrade clients.
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 July 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 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 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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