TD Ameritrade's Investor Movement Index: IMX Takes a Positive Turn in September Amid S&P 500 Pull Back
October 06 2014 - 12:30PM
Business Wire
Renewed appetite for equities indicates
investors were buying on market dips
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 September
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 September 2014 Investor Movement Index for the four weeks
ending September 26, 2014, reveals:
- Reading: 5.79 (compared to 5.68 in
August)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
High
During this same time period, the S&P 500 retreated from the
record high it had reached during the previous month.
“Our clients took a measured approach to increasing their market
exposure in September and were very focused on specific names,”
said JJ Kinahan, chief strategist for TD Ameritrade. “The IMX has
remained at high levels all year, but as the market has been in an
uptrend this year, we’ve seen upticks during the market dips.”
Although TD Ameritrade clients dialed back their equity exposure
in August, they ramped it back up in September, sending the IMX to
its third highest level since tracking of the index began. Along
with mixed economic data, there were plenty of events for investors
to consider, including: the possibility of Scotland leaving the
United Kingdom; the European Central Bank announcement of a
quantitative easing program; and Alibaba’s IPO, which was the
largest in history. The equity markets saw volatility during the
month, with the NASDAQ Composite starting September at its highest
level ever, only to close the month 2% lower. The S&P 500 and
the Dow Jones Industrial Average (DJIA) both reached new highs
during the third week of the month but later retreated, with the
DJIA finishing the month near where it started and the S&P 500
finishing one percent lower. Small caps stocks measured by the
Russell 2000 had an even larger decline of five percent.
TD Ameritrade clients were net buyers overall in September.
Apple (AAPL) and Yahoo (YHOO) were popular buys: Apple
released its much-anticipated iPhone 6, while Yahoo was popular for
its earlier, pre-IPO investment in Alibaba (BABA). Clients also
bought BABA following its record-setting IPO. TD Ameritrade clients
were net buyers of oil drillers SeaDrill (SDRL) and Transocean
(RIG), which have been under pressure, as the price of crude oil
traded at the low end of a 52-week range in September following its
52-week high set in June. Basic materials issuers Vale S.A. (VALE)
and Kinder Morgan (KMI) were also popular buys.
TD Ameritrade clients also did some selling of popular names in
September. Facebook (FB) reached a new high and was a popular sell,
as was Intel (INTC), which reached a level it had not seen since
shortly after the dot-com boom. TD Ameritrade clients were net
sellers of Amazon (AMZN), which has been volatile in 2014 and
trended lower in September, and the financial sector’s Citigroup
(C) and Bank of America (BAC).
The IMX value is calculated based on a complex proprietary
formula. Each month, TD Ameritrade pulls a sample from its client
base of six 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 September 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 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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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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