Retail investors continue a nine month bullish
trend
The October 2017 Investor Movement Index® recovered from the
prior month’s decline to reach a near-record high of 7.40, 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
have actually done and how they were positioned in the markets.
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TD Ameritrade October 2017 Investor
Movement Index (Graphic: TD Ameritrade)
The October 2017 Investor Movement Index for the four weeks
ending October 27, 2017, reveals:
- Reading: 7.40 (compared to 7.14 in
September)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
High
As TD Ameritrade clients were net buyers for a ninth consecutive
month, the IMX rose nearly 4 percent from September to reach the
second-highest reading in IMX history.
The October period was marked by strong U.S. markets, positive
corporate earnings and a strengthening global economy, all of which
seemed to influence the retail investor’s bullish behavior. Major
market indices posted gains in October, with the Nasdaq Composite
and Dow Jones Industrial Average both reaching new milestones-
Nasdaq crossed 6,700 and Dow crossed 23,000. The S&P 500 had
another month of low volatility, and the CBOE Volatility Index
(“the VIX”) hovered around a modest 10 for a majority of the
period.
“TD Ameritrade clients have continued to be net buyers and seem
to be putting their money where they see opportunity,” said JJ
Kinahan, chief market strategist at TD Ameritrade. “Retail
investors have increased their exposure to Chinese stocks, while
taking profits in the energy sector as crude oil hits 52 week
highs.”
Technology stocks remained popular in October, as TD Ameritrade
clients were net buyers of semiconductor companies Nvidia Inc.
(NVDA) and Micron Technology Inc. (MU). Nvidia Inc. (NVDA)
continued its upward momentum, reaching all-time highs during the
period, while Micron Technology Inc. (MU) reached a 52-week high
following an analyst upgrade.
Continuing a trend from last month, TD Ameritrade clients were
net buyers of Chinese stocks including Alibaba Group (BABA) and
JD.com (JD). Additional popular names bought include General
Electric Inc. (GE), Teva Pharmaceuticals Inc. (TEVA), Square Inc.
(SQ) and Switch Inc. (SWCH).
Popular names in the oil sector, Exxon Mobil Corp. (XOM) and
Chevron Corp. (CVX), reported higher than expected earnings and
were net sold by TD Ameritrade clients. Other oil and gas sector
sells included BP (BP) and Conoco Phillips Corp. (COP).
TD Ameritrade clients were also net sellers of popular financial
stocks including Wells Fargo & Co. (WFC) and Goldman Sachs
Group Inc. (GS). Wells Fargo & Co. (WFC) was net sold for the
fourth consecutive month after missing on earnings, while Goldman
Sachs Group Inc (GS) beat earnings expectations and announced it is
expanding its private-equity investment offerings.
Finally, Alphabet Inc. (GOOG) was net sold despite beating
earnings expectations and trading above $1,000 per share for the
first time ever. Additional names sold include Verizon
Communications (VZ) and Bristol-Meyers Squibb (BMY).
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.
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. 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, or read our stories at Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
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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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