TD Ameritrade’s Investor Movement Index: Clients Were Net Buyers of Equities in November
December 07 2015 - 12:30PM
Business Wire
IMX increased as clients were more aggressively
positioned
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
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.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20151207006047/en/
The November 2015 Investor Movement Index for the four weeks
ending November 27, 2015, reveals:
- Reading: 4.88 (compared to 4.79 in
October)
- Trend direction: Positive
- Trend length: 2 months
- Score relative to historic ranges:
Middle
The IMX moved higher for a second month, to 4.88, as TD
Ameritrade clients were net buyers.
TD Ameritrade clients were more aggressively positioned in
November. The increase in exposure to equity markets was the result
of both net buying and increases in the volatility relative to the
overall market in some of the most widely held positions. The
increase brings the IMX to just slightly above the level where it
began the year.
All four major equity indices ended the November IMX period
higher than where they began, but only after each had a brief dip
into negative territory during the middle of the month. The S&P
500 and Dow Jones Industrial Average saw gains of less than 1%, but
the NASDAQ Composite rebounded to close the period up 1.5%. Each
has largely regained the losses sustained in the volatility of late
August and returned to near all-time highs. The Russell 2000 saw
the largest gain and was up 3.5% for the month. The mid-month
market decline seemed to be initiated by U.S. economic reports
which noted a higher than anticipated number of jobs being created
in October and that the unemployment rate fell to a seven year low.
The unemployment rate has been noted as one of the metrics in the
Federal Reserve’s decision regarding whether or not to raise its
key interest rate. Volatility in the S&P 500 as measured by the
VIX spiked briefly during the market’s down trend, but returned to
lower levels by the end of the month. The spike in volatility
coincided with news of a widely publicized terrorist attack in
Paris.
“November had a couple days of heavy selling that resulted in
spikes in volatility. We saw our clients take these as aggressive
buying opportunities,” said JJ Kinahan, chief market strategist, TD
Ameritrade. “Retailers, specifically well-known retailers like
Amazon and Nike, were a popular group to gain exposure in ahead of
the holiday season. We also saw the continued trend of
dividend-paying stocks garnering interest as even with an expected
rate raise investors see value in these stocks.”
Retailers and consumer goods issuers continued to be popular net
buys ahead of the holiday shopping season. Online retailer
Amazon.com Inc. (AMZN) appeared to garner the most interest in this
group, however NIKE Inc. (NKE) and Starbucks Corp. (SBUX) were also
popular net buys. Net buying in dividend-paying companies also
persisted into November. AT&T Inc. (T), with a dividend yield
of greater than 5%, and International Business Machines Corp.
(IBM), which yields more than 3%, were both net buys from the
technology sector. Dividend payers Alcoa Inc. (AA) and
Freeport-McMoRan Inc. (FCX), both from the basic materials sector,
were net buys as well.
Despite being overall net buyers of equities, TD Ameritrade
clients did find some positions to sell in November. Financial
issuers Bank of America Corp. (BAC) and Citigroup Inc. (C), which
have both rallied since the beginning of October, were both net
sells. Dow Chemical (DOW) also rallied through November and was net
sold. Microsoft Inc. (MSFT), which has traded near its all-time
high since last month following a favorable earnings report, was
net sold as well. And Rite Aid Corp. (RAD), which had been a
popular net buy in recent months, was net sold following a buyout
announcement by rival Walgreens Boots Alliance Inc. (WBA).
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 November 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 40 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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version on businesswire.com: http://www.businesswire.com/news/home/20151207006047/en/
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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