Many of the purchased and widely held names saw volatility remain relatively stable compared to the overall U.S. equity market

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 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.

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The July 2015 Investor Movement Index for the four weeks ending July 31, 2015, reveals:

  • Reading: 5.39 (compared to 5.32 in June)
  • Trend direction: Positive
  • Trend length: 3 months
  • Score relative to historic ranges: High

The IMX rose to 5.39 in July as TD Ameritrade clients were net buyers while slightly increasing their exposure to the equity market.

TD Ameritrade clients were strong net buyers of equities during the July IMX period which helped to increase the IMX reading. However, many of the purchased and widely held names saw volatility remain relatively stable compared to the overall U.S. equity market, resulting in a slight IMX increase.

“It was an active earnings month in July and we saw our clients reallocate their capital around corporate earnings announcements,” said JJ Kinahan, chief strategist, TD Ameritrade. “Many of our clients lightened positions in the form of profit taking after companies posted positive earnings. In contrast to the selling activity we saw net buying in stocks that have been under pressure, clients appeared to view the lower prices as buying opportunities."

Volatility in the S&P 500, as measured by the VIX, trended higher during the first two weeks of the July IMX period, and closed above 19 during the second week, a level it has not seen since early February. The S&P 500, which has been range bound, recorded a slight gain of 0.11% during the period, while the NASDAQ Composite gained about 1%. Both indexes saw increases into the third week of July, with the NASDAQ setting a new all-time high, only to retreat in the fourth week and rebound only slightly to close the period. Both the Dow Jones Industrial Average and Russell 2000 lost ground during the month, closing down 1.42% and 3.2% respectively. Fears of a Greek default and possible exit from the Euro, declining oil prices and a market sell off in China all seemed to weigh on the markets during the month, although many TD Ameritrade clients appeared to treat the lower prices as buying opportunities.

Oil producers were popular net buys in July, including Conoco-Phillips Corp. (COP), Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) as a slide in oil prices weighed on their share prices ahead of their earnings announcements. Chesapeake Energy Corp. (CHK), another Energy sector issuer, was also a net buy as it also felt the pressure of lower oil prices and was forced to suspend its dividend payments. Apple Inc. (AAPL) was a net buy as its price dipped following its earnings announcement and disappointing guidance. TD Ameritrade clients were also net buyers of Netflix.com Inc. (NFLX) at its new, lower price point following its 7 for 1 forward split. Netflix’s stock price also gapped higher after reporting earnings above consensus estimates. The stock price of Facebook Inc. (FB) climbed to an all-time high, but traded lower toward the end of the month and was a popular buy of TD Ameritrade clients.

Despite the strong net buying in equities during July, there were some popular names net sold surrounding favorable earnings announcements. Google Inc. (GOOG,GOOGL) was a net sell as it posted better than expected earnings and saw its share prices surge to a new high. Financial sector issuers Citigroup Inc. (C) and MasterCard Inc. (MA) were also net sells following a price increases after their earnings announcements. General Electric Co. (GE), which met earnings and announced a restructuring away from the financial business, was also net sold. Amid concerns about the Chinese economy, Alibaba Holdings Group Limited (BABA) was net sold and hit a new all-time low in July.

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 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)

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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