TD Ameritrade’s Investor Movement Index: IMX Double Dips in November
December 08 2014 - 12:30PM
Business Wire
Retail investors were strategic about taking
profits, saw buying opportunities in oil price declines
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 November
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 Investor Movement Index for the four weeks ending November
28, 2014, reveals:
- Reading: 5.11 (compared to 5.22 in
October)
- Trend direction: Negative
- Trend length: 2 month
- Score relative to historic ranges:
Moderately High
“Increasingly, retail investors are showing us that investing is
not an ‘all-or-nothing’ game for them,” said JJ Kinahan, chief
strategist for TD Ameritrade. “We’re seeing clients respond to
market moves in ways that are similar to professionals – they’re
remaining engaged and making strategic adjustments where they see
pockets of opportunity.”
The IMX declined for a second month in a row for the first time
since early 2013. Client portfolios were less volatile relative to
the S&P 500 in October compared to previous periods, and the
lower sensitivity levels carried over into November, even though
buying activity picked up as the month progressed. The decline
marks the IMX at its lowest point since September 2013, but the IMX
still remains moderately high relative to its history, settling at
5.11 for the November period.
The rallies in the major market indexes that began in the latter
part of October continued through November. Favorable earnings
reports and earnings forecasts, a continuation of falling oil
prices, decreasing Ebola concerns, the end of midterm elections and
an overall positive tone to U.S. economic indicators seemed to help
boost the equity markets. The S&P 500 and the Dow Jones
Industrial Average saw steady increases throughout the month and
both closed around 2.5 percent higher. The Nasdaq Composite Index
dipped briefly at the start of the month, but ended more than 3
percent higher. Oil and oil producing companies saw significant
declines, particularly at the end of the month when OPEC decided to
maintain the current levels of production. By the end of November,
oil was trading at levels not seen since 2009.
Popular buys included stocks that saw price declines in
November. Clients bought shares of oil producing companies
whose valuations followed the drop in oil prices, such as
Transocean (RIG), BP PLC (BP), and Haliburton (HAL). Falling stock
prices and buying interest were not limited to the energy sector;
in the technology sector, Twitter (TWTR) saw its price dip and was
a net buy, as did Gilead Sciences (GILD) in healthcare. IBM’s stock
price plunged in October following earnings but seemed to stabilize
in November, as clients were net buyers. Other popular names bought
included Alibaba (BABA), Disney (DIS), and GoPro Inc.
(GPRO).
TD Ameritrade clients were net sellers of some popular names
that saw increases. Whole Foods Market (WFM) was a popular buy in
the spring when its stock price fell, and in November, clients
appeared to take profits when the company reported favorable
earnings and the stock climbed back to levels seen before its
springtime drop. American Airlines Group (AAL) was also a popular
sell - the stock made a sharp recovery from its October low and
then jumped higher on news of lower fuel costs. The trend carried
over into the technology sector with Cisco (CSCO) and Yahoo (YHOO),
as well as in the financial sector with Citigroup (C) and Bank
of America (BAC). Intel (INTC), Oracle (ORCL) and Sirius XM (SIRI)
were also sold.
For more information on the Investor Movement Index, including
historical IMX data going back to December 2010, to view the full
report from November 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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TD Ameritrade Holding CorporationFor Media:Alyson
Nikulicz, 201-369-8388Communications & Public
Affairsalyson.nikulicz@ersservices.netorFor Investors:Jeff Goeser,
402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com@TDAmeritradePR
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