Retail investors were net buyers in December
and overall for the year
The December 2017 Investor Movement Index® reached an all-time
high of 8.59 as retail investors significantly increased their
equity exposure throughout 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 December 2017 Investor
Movement Index (Graphic: TD Ameritrade)
December IMX
The December 2017 Investor Movement Index for the five weeks
ending December 29, 2017, reveals:
- Reading: 8.59 (compared to 8.53 in
November)
- Trend direction: Positive
- Trend length: 3 months
- Score relative to historic ranges:
High
The IMX climbed to a new record high for the second month in a
row, ending December at 8.59. TD Ameritrade clients remained net
buyers, resulting in one of the longest buying streaks – eleven
consecutive months – in the history of the IMX. Increased equity
exposure from net buying caused the IMX to close out the year at
its highest reading yet.
Major market indices increased once again during the December
IMX period, with the S&P 500, Dow Jones Industrial Average, and
Nasdaq Composite all reaching all-time highs during the month.
“In December, TD Ameritrade clients continued the strong buying
we saw all year, as shown by the new record high IMX,” said JJ
Kinahan, chief market strategist at TD Ameritrade. “The retail
investor continues to participate in the rally and has done so in a
very measured way.”
Heading into the holiday season, TD Ameritrade clients were net
buyers of online retailer Amazon Inc. (AMZN) as the stock reached
an all-time high early in the period. For the third month in a row,
General Electric Inc. (GE) was a net buy. The stock reached a
52-week low during the period as the company continued to work on
its new turnaround plan.
Clients once again showed interest in semiconductors. In
December, clients were net buyers of Nvidia Inc. (NVDA) and Micron
Technology Inc. (MU). Both stocks increased in excess of 80 percent
during the year, but pulled back during the month. Chinese stocks
were also popular buys. Alibaba Group Holding (BABA) and Tencent
Holdings Ltd (TCEHY) both saw slight volatility during the period
and were net buys. Additional popular names bought include
Microsoft Corp. (MSFT) and Bank of America Corp. (BAC).
TD Ameritrade clients used the equity market increases to sell
some names in December. Ford Motor (F), which was up following an
analyst upgrade during the period, was a net sell. Kroger Co. (KR)
was a net sell following an earnings beat and its CEO reporting it
had its best Black Friday ever. Wells Fargo & Co. (WFC)
increased during the period and was net sold. Valeant
Pharmaceuticals (VRX) increased over 25 percent during the period,
and was net sold.
Clients were also net sellers of telecommunications, including
AT&T Inc. (T) and Verizon Communications (VZ), despite both
stocks seeing gains in excess of 10 percent during the period.
Additional names sold include Chipotle Mexican Grill (CMG) and
Exxon Mobile Corp. (XOM).
2017 Year in Review
TD Ameritrade clients were overall net buyers during 2017,
increasing their equity positions during the year. The most popular
buys were Nvidia Inc. (NVDA), Alibaba Group Holding (BABA), Amazon
Inc. (AMZN), AT&T Inc. (T), and General Electric Inc.
(GE).
The five most popular stocks sold during the year by clients
were Apple Inc. (AAPL), Facebook Inc. (FB), Disney (DIS), Nike Inc.
(NKE) and ConocoPhillips Co. (COP).
TD Ameritrade clients ended 2017 with exposure at all-time
highs. Clients began the year increasing exposure to equity
markets, with the IMX setting two records during the first quarter
of the year, and reaching 6.0 for the first time.
The IMX saw a modest pullback during April, as lower relative
volatility of widely held names led to decreased equity market
exposure. The IMX resumed its upward trend in June, and broke
through 7.0 for the first time ever in July. September marked
another brief slow down, as decreased relative volatility pushed
the IMX lower. November saw an uptick, with the IMX recording its
largest monthly increase ever- increasing over 8.0 for the first
time. The IMX increased once again in December, and ended the year
at another all-time high of 8.59.
The biggest trading day for equities in 2017 was Nov. 29, 2017,
in which the Nasdaq was down negative 1.3 percent and Apple Inc.
(APPL) and Facebook Inc. (FB) were down negative 2.1 percent and
negative 4.0 percent, respectively. Oct. 27, 2017 marked the
biggest trading day for options, a day in which the Nasdaq had its
biggest gain of the year following strong earnings from Amazon Inc.
(AMZN), Alphabet (GOOGL), Microsoft Inc. (MSFT) and Intel (INTC).
As of Dec. 29, 2017, the most widely held stocks by TD Ameritrade
retail clients were Apple Inc. (APPL), Facebook Inc. (FB), General
Electric Inc. (GE), Amazon Inc. (AMZN) and AT&T Inc. (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.
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. 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/20180108005345/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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