TD Ameritrade's Investor Movement Index: IMX Declined in August While S&P 500 Reached Record High
September 08 2014 - 12:30PM
Business Wire
Investor eyes on world events means IMX
downshifted for second time in 2014
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 August
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 August 2014 Investor Movement Index for the four weeks
ending August 29, 2014, reveals:
- Reading: 5.68 (compared to 5.85 in
July)
- Trend direction: Negative
- Trend length: 1 month
- Score relative to historic ranges:
High
“Equity markets did continue to go higher, but instability from
geopolitical events early in the month may have caused some
hesitation among investors as the situation played out,” said
Nicole Sherrod, managing director of the trader group, TD
Ameritrade. “That said, the IMX is still very bullish and remains
higher than what we saw in back in April, when it declined for the
first time in seven months.”
Investors have had many events to consider recently including
positive economic data amid geopolitical concerns related to
Ukraine, the Middle East, an outbreak of the Ebola virus in Africa
and Argentina’s debt default. TD Ameritrade clients reduced their
equity exposure during the August IMX period, which returned the
IMX to the levels we saw in April through June of this year. Equity
markets began to fall in late July, which had some investors
wondering if it was the start of a correction. However, equity
indices quickly reversed course in August, rising sharply. The
S&P 500 broke the 2000-point barrier, setting a new high, while
both the Dow Jones Industrial Average and NASDAQ also traded at
record levels. Small cap stocks measured by the Russell 2000 index
were recently still trading below the high set in July 2014.
Equity buying in the August IMX period appeared focused on names
in the news like Walgreens (WAG), which decided not to move its
headquarters overseas to potentially benefit from lower corporate
tax rates; Kinder Morgan Inc. (KMI), which announced restructuring
plans to buy its publicly traded limited partnerships; and Tekmira
Pharmacueticals (TKMR), which is working to develop an Ebola
vaccine. Dips in popular names like Sprint (S), Transocean (RIG),
and 3D Systems Corp (DDD) may also have prompted TD Ameritrade
clients to buy during the August IMX period. Recent IPOs MobilEye
(MBLY) and El Pollo Loco (LOCO) were popular buys as well as
clients built positions in the issuers.
TD Ameritrade clients were net sellers overall for the August
IMX period, matching the reduction in equity exposure seen in the
decline of the IMX score. The technology sector led the way in the
selling, with many notable names sold -- including Intel (INTC),
Microsoft (MSFT), and Advanced Micro Devices (AMD). Each of the
stocks had recently begun to recover from a dip in price. The stock
price of Twitter (TWTR) had been under pressure since late January,
but jumped higher following their earnings announcement at the end
of July. TWTR continued to move higher in August, and our clients
were net sellers. Nokia (NOK) was also a net sell as the stock fell
sharply and then recovered during the month. Citigroup (C) and
Goldman Sachs (GS) were both popular sells in the financial sector
as well.
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 August 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 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, as well as an official sponsor of the National Football
League for the 2014, 2015 and 2016 seasons, 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) Source: TD Ameritrade
Holding Corporation
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For TD Ameritrade Holding CorporationFor Media:Alyson
Nikulicz, 201-369-8388Communications & Public
Affairsalyson.nikulicz@ersservices.net@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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