TD Ameritrade’s Investor Movement Index: Clients Were Net Buyers of Equities in April
May 09 2016 - 12:30PM
Business Wire
Overall market volatility seemed to stabilize
in April
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 April
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.
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View the full release here:
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TD Ameritrade's IMX vs. S&P 500
Credit: TD Ameritrade (Graphic: Business Wire)
The April 2016 Investor Movement Index for the four weeks ending
April 29, 2016, reveals:
- Reading: 4.41 (compared to 4.33 in
March)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
Middle
Net buying in April helped to increase the IMX to 4.41.
Overall market volatility seemed to stabilize in April, after
declining from relative highs earlier in the year. Exposure to the
equity markets within TD Ameritrade client accounts increased
slightly, as the decline in overall market volatility helped to
make the relative volatility of some widely held positions rise
modestly. Net buying by TD Ameritrade clients also helped to
increase the IMX.
“Clients were net buyers as volatility steadied a bit in April,”
said JJ Kinahan, chief market strategist, TD Ameritrade. “This past
month was also the kick-off of corporate earnings season so we saw
many clients make investment decisions based on those reports.”
While market volatility stabilized, the S&P 500 and Dow
Jones Industrial Average saw gains of around 1.5%, while the
Russell 2000 gained more than 4% and the NASDAQ Composite was
essentially flat. Crude oil prices continued their rally in April,
after a brief dip to begin the month, closing the period above $45
a barrel. The Federal Reserve Board met again in April and
announced that there would be no change to their key rate, citing
lack of progress towards their goal of 2% inflation. The Fed
maintained the economic outlook they gave in March and reiterated
that any future rate increases would be dependent upon economic
data.
Dividend paying stocks appeared to be popular in April as
AT&T Inc. (T), Ford Motor Co. (F) and Wells Fargo & Co.
(WFC) were each net buys. AT&T and Ford’s dividend yields are
both above 4%, and Wells Fargo’s yield is around 3%. Facebook Inc.
(FB) was also a net buy as it reached a new all-time high following
its earnings announcement. The company’s shares surged in
afterhours trading and opened nearly 10% higher the next day.
Popular apparel company Under Armour Inc. (UA) also announced
earnings in April and was a net buy. Its shares were essentially
flat for the month.
Despite being net buyers overall, TD Ameritrade clients were net
sellers of some popular names that have seen rebounds in price so
far this year. Although widely held by TD Ameritrade clients, Apple
Inc. (AAPL) was net sold prior to announcing earnings late in the
month. The stock has rebounded since posting a new 52 week low in
late January. Ali Baba Holdings (BABA) is another popular name that
has rebounded since late January. It was net sold for a second
month. Oil Producer Chevron Corp. (CVX) has seen its value rebound
with the price of crude oil. The stock traded above $100 per share
for the first time since June 2015 and was net sold.
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 April 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 Corporation
Millions 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 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/20160509005452/en/
TD Ameritrade, Inc.For Media:Beth Evegan,
859-331-2391Communications & Public
Affairsbeth.evegan@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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