TD Ameritrade's Investor Movement Index: IMX Falls to a New Two-Year Low
March 09 2015 - 12:30PM
Business Wire
Investors exercise less exposure to equity
markets and at the same time are net buyers in the new year
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 February
2015. 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 February 2015 Investor Movement Index for the four weeks
ending February 27, 2015, reveals:
- Reading: 4.70 (compared to 4.85 in
January)
- Trend direction: Negative
- Trend length: 2 months
- Score relative to historic ranges:
Middle
TD Ameritrade clients’ exposure to equity markets declined for
the second month in a row, resulting in an IMX reading of 4.70 —a
new two-year low.
The February IMX period saw increases in U.S. equity markets
along with a decline in volatility. The S&P 500, Dow Jones
Industrial Average, NASDAQ, and Russell 2000 indexes all posted
gains greater than 4% for the period, with the NASDAQ ending the
month within 2% of its all-time high. An easing of tensions
surrounding the Greek debt crisis in Europe, Federal Reserve
testimony that reaffirmed patience in raising rates, and a slight
rebound in oil prices early in the month seemed to reduce
volatility and boost the markets.
TD Ameritrade clients were net sellers of equities in dollar
terms over the month of February. This net selling was not the only
contributor to the decline in the IMX, however; some widely held
companies saw declines in volatility relative to the S&P 500,
and this also helped to lower this month’s IMX reading. The result
of all of this activity was a reduction in equity market exposure
among client portfolios and a more cautious portfolio posture. Top
holdings remained stable and clients continue to favor Apple
(AAPL), Facebook (FB) , AT&T (T), and General Electric
(GE).
“This month’s reading is unique in that our clients were net
sellers,” said Nicole Sherrod, managing director of the trader
group, TD Ameritrade. “In the months prior, the score was
driving lower because they were rotating into lower beta positions.
This month’s score suggests more acute bearishness.”
Oil producers remained popular in February, as Exxon Mobil Corp.
(XOM) and Chevron Corporation (CVX) were net buys. GoPro, Inc.
(GPRO) and Alibaba Group (BABA), both familiar names who had their
initial public offerings over the last year, saw declines in their
prices in February and were also net buys. Apple Inc. (AAPL) was
also a net buy, as it announced it would reveal a new product in
early March.
February saw net selling in Amazon (AMZN), Netflix (NFLX), and
Twitter (TWTR). Each saw their prices rise to levels of resistance
during the month. Clients appeared to take profits in Boeing (BA),
whose stock price jumped higher following their earnings
announcement at the end of January; the stock continued to climb in
February. Sirius XM (SIRI) and JC Penney (JCP), both lower-priced
names who have been popular with traders in the past, were also net
sells.
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 February 2015, 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)
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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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