Retail investors were net buyers in June and
overall for the first half of the year
The June 2017 Investor Movement Index® reached an all-time high
of 6.58 as retail investors steadily increased their equity
exposure throughout the first six months of 2017, TD Ameritrade,
Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade
Holding Corporation (Nasdaq: AMTD) announced today. 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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TD Ameritrade June 2017 Investor Movement
Index (Graphic: TD Ameritrade)
The June 2017 Investor Movement Index for the four weeks ending
June 30, 2017, reveals:
- Reading: 6.58 (compared to 6.13 in
May)
- Trend direction: Positive
- Trend length: 2 month
- Score relative to historic ranges:
High
The IMX spiked seven percent in June, reaching a new high of
6.58, as TD Ameritrade clients increased exposure to equity markets
for the second month in a row. Net buying of equities, coupled with
higher relative volatility in widely held names, including Apple
(AAPL) and Facebook (FB), caused client accounts to show increased
equity exposure. Year-to-date, indices have posted healthy
increases – S&P 500 and Dow Jones Industrial Average up over
eight percent, and Nasdaq Composite increasing over 14 percent.
Economic data has also strengthened around the globe so far this
year, and the Federal Reserve remains confident about the path of
the U.S. economy, increasing its target rate by a quarter
percent.
“With five consecutive months of net buying, we see retail
investors continuing to participate in the market as it hovers just
below all-time highs,” said Steven Quirk, executive vice president
of trading at TD Ameritrade. “As the 10-year yield remains lower
than earlier estimates, dividend stocks including Ford, AT&T
and Verizon have remained client favorites.”
For the second consecutive month, TD Ameritrade clients showed
strong interest in Technology stocks. Apple (AAPL), which
experienced volatility during the month and ended the period down,
was a net buy. Facebook (FB) reached a 52-week high during June and
was net bought. Amazon (AMZN), which broke through the $1,000 mark
during the period, was also a net buy. Tesla Inc. (TSLA) hit
another all-time high during the period and was another net buy.
Dividend payers Ford (F), AT&T Inc. (T) and Verizon (VZ) were
also in favor among TD Ameritrade clients, all being net buys.
Advanced Micro Devices Inc. (AMD), which saw substantial volatility
along with an analyst upgrade during the period, was a net buy.
Shopify Inc. (SHOP) was also a net buy after reaching a new high.
Additional popular names bought include Microsoft Inc. (MSFT) and
Berkshire Hathaway Inc. (BRK.B).
TD Ameritrade clients were net sellers of banks Citigroup Inc.
(C) and Bank of America (BAC) during the period. Both stocks were
up during the June period as all major banks passed the qualitative
portion of the Fed’s stress test and were cleared to pay increased
dividends. Arconic Inc. (ARNC) was a net sell once again following
volatility with the stock down over 15 percent during the period.
American Airlines Inc. (AAL) was a net sell after the company
reached a 52-week high following record year-to-date traffic
volume. Bristol-Meyers Squibb (BMY), which traded up during the
month after the U.S. Senate released its legislation to repeal and
replace the Affordable Care Act, was also net sold. Newill Brands
Inc. (NWL), which reaffirmed its guidance and reached a
year-to-date high, was a net sell. Additional names sold include
Yahoo, Inc. (YHOO) and Mobileye (MBLY).
2017 Mid-Year Review
TD Ameritrade clients were net buyers overall in the first half
of 2017, increasing their equity positions during the year. The
most popular buys of these investors so far this year were Nvidia
(NVDA), followed by Amazon (AMZN). Verizon (VZ), AT&T (T),
and Ford (F) rounded out the ranks of the top five stocks
bought.
The five most popular stocks sold to date in 2017 by clients
were Apple (AAPL), Facebook (FB), Disney (DIS), Wynn Resorts (WYNN)
and Citigroup (C).
TD Ameritrade clients ended the first half of the year with
equity exposure at all-time highs. Following a decrease in equity
exposure in December of 2016, clients began adding to exposure in
2017 as markets pushed to new all-time highs. The IMX saw a slight
pullback in April 2017 following lower relative volatility in
widely held names compared to the overall market. The IMX then
pushed higher on the back of broad market increases, and ended the
June period at a score of 6.58.
The biggest trading day and the biggest day for equity trades in
the first half of 2017 was May 17, on which the S&P was down
1.8 percent and the Nasdaq was down over 2.5 percent. The second
biggest day for client trading and the largest day for option
trades was June 9, on which the Nasdaq fell almost 2 percent after
hitting a high intraday.
As of June 30, 2017, the most widely held stocks by TD
Ameritrade retail clients were Apple (AAPL), Facebook (FB), Amazon
(AMZN), General Electric (GE) and AT&T (T).
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 7 million funded accounts, which 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 May 2017; 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.
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. 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)
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: http://www.businesswire.com/news/home/20170710005869/en/
TD Ameritrade Holding CorporationFor Media:Christina
Goethe, 201-369-8510Communications & Public
Affairschristina.goethe@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor
Relationsjeffrey.goeser@tdameritrade.com
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