Ongoing bullish activity from retail investors
pushes IMX above 8 for first time ever
The November 2017 Investor Movement Index® hit a new all-time
high of 8.53, 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 November 2017 Investor
Movement Index (Graphic: TD Ameritrade)
The November 2017 Investor Movement Index for the four weeks
ending November 24, 2017, reveals:
- Reading: 8.53 (compared to 7.40 in
October)
- Trend direction: Positive
- Trend length: 2 months
- Score relative to historic ranges:
High
The IMX had its largest single month increase ever in
November—increasing over 15 percent—as TD Ameritrade clients were
net buyers for a tenth consecutive month. Net buying, coupled with
higher relative volatility in many widely held names, including
Apple (AAPL) and General Electric (GE), helped raise the IMX by
more than 15 percent.
The November period saw investors positioning their accounts for
more exposure to equity markets as major market indices reach
all-time highs, with the S&P 500 touching 2,600 for the first
time ever. Increased projections for the U.S. economic growth from
two Federal Reserve Banks also helped equity gains, following
better-than-expected housing and industrial production data.
Finally, the unemployment rate also edged down to 4.1 percent
heading into the holiday shopping season, the lowest point since
2000.
“This IMX reading shows that investors had continued confidence
in the market. They wanted exposure to the amazing rally in
November as all three major indices hit all-time highs,” said JJ
Kinahan, chief market strategist at TD Ameritrade.
TD Ameritrade clients seemed to take an interest in some
volatile blue chips during the November period. AT&T Inc. (T)
was net bought following the U.S. Department of Justice suit to
block the proposed AT&T and Time Warner merger. General
Electric Inc. (GE), net bought, reached a 5-year low following a
dividend cut.
Semiconductors remained popular in November. TD Ameritrade
clients were net buyers of Nvidia Inc. (NVDA), Advanced Micro
Devices Inc. (AMD) and Micron Technology Inc. (MU), with all three
companies receiving analyst upgrades during the period.
The interest in Chinese online companies continued in November
as Alibaba Group (BABA), JD.com (JD) and Tencent Holdings Ltd
(TCEHY) were net bought, with Alibaba Group (BABA) and Tencent
Holdings Ltd (TCEHY) both reaching 52-week highs during the
period.
Finally, Tesla Inc. (TSLA) was net bought after showcasing its
new commercial truck. Additional popular names bought include
Square Inc. (SQ), Facebook Inc. (FB) and Paypal Holdings Inc.
(PYPL).
Even with an increase in overall equity market exposure, TD
Ameritrade clients did appear to find some attractive exit prices
in November. Twitter Inc. (TWTR) traded to a 52-week high following
positive earnings and expanding tweets to 280 characters, and was
net sold. Costco Wholesale Corp. (COST) was net sold after trading
higher on the back of optimistic projections for 2017 holiday
sales. Qualcomm Inc. (QCOM), which rocketed higher following a
proposed takeover by Broadcom Limited (AVGO), was net sold. Nike
Inc. (NKE) was also net sold after announcing an increased dividend
and elevated customer experience platform with Foot Locker Inc.
(FL), and was net sold.
Oil and gas companies, including Conoco Phillips Corp. (COP), BP
(BP) and Marathon Oil Corp. (MRO) were net sold, despite trading
higher in the period. Additional names sold include Starbucks Corp.
(SBUX), General Motors Company (GM) and Wells Fargo & Co
(WFC).
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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version on businesswire.com: http://www.businesswire.com/news/home/20171204005672/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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