TD Ameritrade’s Investor Movement Index: Clients Were Net Buyers of Equities in June
July 05 2016 - 12:30PM
Business Wire
Market volatility rises and falls with clients
adjusting positions to maximize returns
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 June 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
(Graphic: TD Ameritrade)
The June 2016 Investor Movement Index for the four weeks ending
June 24, 2016, reveals:
- Reading: 5.00 (compared to 4.87 in
May)
- Trend direction: Positive
- Trend length: 3 Months
- Score relative to historic ranges:
Moderately High
The IMX increased to 5.00 in June, a month in which TD
Ameritrade clients were net buyers of equities.
TD Ameritrade clients were net buyers of equities in June, with
exposure to the equity markets increasing for the first three weeks
of the month and declining during the fourth week. The buying
activity helped to increase the IMX by 0.13 to 5.00. There were
some increases in the volatility of a few widely held names
relative to the overall market, which also helped to increase the
IMX; however, trading in names that saw decreases in volatility
relative to the overall market during the turbulent fourth week
helped to lessen the increase in the overall IMX score.
“After being range bound for most of the month of June, the
volatility at the end of the month spurred by the Brexit vote, was
a catalyst for our clients to step up their buying activity,” said
JJ Kinahan, chief market strategist, TD Ameritrade. “The dip was
seen as a time of opportunity rather than calamity.”
Increased uncertainty leading up to the Federal Reserve Board
meeting and the United Kingdom’s referendum on whether or not to
remain in the European Union seemed to weigh on the minds of
investors. After the Fed announced there would be no change to
their key rate in June, focus appeared to shift to the U.K.’s
referendum vote, or Brexit. Volatility declined slightly early in
the fourth week but the results of the referendum, in which U.K.
voters signaled their desire to separate from the E.U., appeared to
come as a surprise. Volatility in the S&P 500, as measured by
the VIX, reached its highest point in four months following the
announcement.
FANG stocks Facebook Inc. (FB) and Amazon.com Inc. (AMZN) were
net buys during the June IMX period. Each has seen declines after
recently setting all-time highs. Dividend-paying auto makers Ford
Motor Co. (F) and General Motors Co. (GM), both of which yield
around 5%, were also net buys in June. TD Ameritrade clients were
also net buyers of consumer discretionary sector issuers Under
Armour Inc. (UA) and Walt Disney Co. (DIS), which have both been
range bound after setting year-to-date highs following their Q2
earnings announcements.
Although they were net buyers overall in June, TD Ameritrade
clients did find some names to sell during the period. Exxon Mobil
Corp. (XOM) and Chevron Corp. (CVX) were net sold in June as both
oil refiners reached year-to-date highs. Crude oil also traded
above $50 per barrel for the first time in 2016. Other companies
that also reached year to date highs and were net sold included
Wal-Mart Stores (WMT) and Corning Inc. (GLW). TD Ameritrade clients
were net sellers of technology sector names Intel Corp. (INTC) and
Cisco Systems Inc. (CSCO) as well.
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 June 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
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/20160705005138/en/
TD Ameritrade Holding CorporationFor 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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