For a second month, volatility in the overall
market outpaced the volatility of many of the widely held positions
in TD Ameritrade client accounts
TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer
subsidiary of TD Ameritrade Holding Corporation (Nasdaq: AMTD), is
today releasing the Investor Movement Index® reading for February
2016. 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/20160307006094/en/
TD Ameritrade's Investor Movement Index
(IMX) vs. S&P 500 (Graphic: TD Ameritrade)
The February 2016 Investor Movement Index for the four weeks
ending February 26, 2016, reveals:
- Reading: 4.44 (compared to 4.52 in
January)
- Trend direction: Negative
- Trend length: 2 months
- Score relative to historic ranges:
Middle
TD Ameritrade clients had slightly less exposure to the equity
market in February, as the IMX decreased to 4.44.
For a second month, volatility in the overall market outpaced
the volatility of many of the widely held positions in TD
Ameritrade client accounts. The relative stability of these
positions, coupled with net buying in some other names whose
volatility was less than that of the overall market, helped to
lower the IMX reading.
“We saw our clients use market movements to rotate out of stocks
they had purchased over the past few months and rallied, into names
that had dropped and they expected to perform well,” said JJ
Kinahan, chief market strategist, TD Ameritrade. “Our clients’
activity with AT&T Inc. (T) is a good example of that. We’ve
seen clients as net buyers of AT&T for the last couple of
months. After its earnings announcement in late January the stock
price climbed to a multi-year high and our clients were net
sellers.”
The February IMX period saw the major equity market indices take
a brief dip mid-month, with the Russell 2000, Nasdaq Composite, and
S&P 500 closing at their lowest points in a year. However,
markets rose in the second half of the month, and each of the
indices ended the month slightly above or very near where they
began. The Dow Jones Industrial Average was the biggest winner,
gaining around 1%, while the S&P 500 and the Russell 2000 were
essentially flat at month end. The NASDAQ Composite had lost about
half of a percentage point at the close of the February IMX period.
The markets’ foray into negative territory raised volatility and
the VIX, a measure of volatility in the S&P 500, closed above
28 in mid-February—something it hadn’t done since September. As the
markets rebounded, the VIX settled lower, closing near 19 which was
the lowest close since the year began. The price of crude oil was
also volatile in February, and eventually declined to around $26,
its lowest point in more than a decade. Prices later rebounded to
close the period around $34.
Several popular stocks seemed to find levels of support in
February. TD Ameritrade clients were net buyers of Alphabet Inc.
(GOOG and GOOGL), which saw a sharp decline from their record high
at the beginning of February following their earnings release.
Alphabet’s stock price fell back to the level it saw prior to their
previous earnings release in October, but eventually climbed higher
during the second half of the month. Apple Inc. (AAPL) was another
net buy whose stock price has been under pressure but seemed to
stabilize in February. Walt Disney Co. (DIS) was a net buy up to
and following its February earnings release. The stock trended
downward to start the month, but ended the February IMX period
about 7% higher than where it had closed after announcing its
quarterly results. Online retailer Amazon.com Inc. (AMZN) posted
record profits in its earnings announcement late last month but
missed analyst estimates. The stock saw price pressure up through
the middle of the February IMX period but later rebounded and was a
net buy.
Dividend payers in the technology sector AT&T (T), Verizon
Communications (VZ), and Oracle Corp. (ORCL) were each net sold in
February. All three stocks saw gains in February, with AT&T and
Verizon Communications setting new 52-week highs. Michael Kors
Holdings (KORS), which has increased since its earnings
announcement early in the month, was net sold as well. Brick and
mortar retailers Target Corp. (TGT), Wal-Mart Stores (WMT), and
Macy’s Inc. (M) were also net sold in February. Each saw its price
trend upward during the month.
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 2016, 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 (Nasdaq: AMTD) technology, people
and education to help make investing and trading easier to
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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/20160307006094/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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