Clients increased equity exposure during busy
earnings season
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 October
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/20161107005173/en/
TD Ameritrade's IMX (Graphic: TD
Ameritrade).
The October 2016 Investor Movement Index for the four weeks
ending October 28, 2016, reveals:
- Reading: 5.83 (compared to 5.49 in
September)
- Trend direction: Positive
- Trend length: 3 months
- Score relative to historic ranges:
High
The IMX rose 6.19 percent to 5.83 in October as retail investors
increased their equity exposure for a third straight month. A
decline in overall market volatility, coupled with net buying,
drove the IMX to its highest level in two years.
“The IMX gives us a view of portfolio volatility relative to
overall market volatility, so while the volatility of some of the
widely held positions in TD Ameritrade client accounts decreased
slightly, the overall market’s volatility decreased more, driving
the IMX to a high point. Although actual volatility declined,
markets seemed to be anticipating more volatility in the future,
which was indicated by a rise in the CBOE Volatility Index (VIX),”
said Nicole Sherrod, managing director of trading for TD
Ameritrade.
“The IMX shows our clients haven’t gotten spooked. With the run
up to the presidential election and more uncertainty around the
Fed’s key rate, peppered with corporate earnings throughout the
month, clients fluidly rotated their portfolios to have more equity
exposure.”
The major market indices all saw declines during the October IMX
period, with the S&P 500 and NASDAQ Composite both declining
around 2 percent. The Dow Jones Industrial Average ended the period
0.80 percent lower than where it began.
Amazon.com Inc. (AMZN), which saw declines late in the period
following their earnings announcement, was a net buy in October.
The online retailer set a new all-time high early in October, but
did not hit earnings estimates when it announced its quarterly
results later in the month.
Continuing a trend from last month, dividend payers Verizon
Communications (VZ) and AT&T Inc. (T) were net buys, but this
month also saw net buying in Ford Motor Co. (F) and General
Electric Co. (GE). Each of these stocks saw their yields rise in
October as their share prices declined. Facebook Inc. (FB), which
set another all-time high early in October, remained a popular net
buy as well.
Popular names in the financial sector, Citigroup Inc. (C) and
Bank of America Corp. (BAC), both saw gains during October and were
net sold by TD Ameritrade clients. Netflix.com Inc. (NFLX), which
was up dramatically following a favorable earnings report, was net
sold as well. Southwest Airlines Co. (LUV) saw gains prior to its
earnings release near the end of the October IMX period and was net
sold. Caterpillar Inc. (CAT), which reached a year-to-date high in
October, was net sold as well.
About the IMX
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 October 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
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been recognized as a leader in investment services.
Please visit
TD Ameritrade's newsroom or www.amtd.com for
more information, or read our stories
at http://freshaccounts.amtd.com.
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/20161107005173/en/
TD Ameritrade Holding CorporationFor Media:Kim Hillyer,
402-574-6523Communications & Public
Affairskim.hillyer@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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