TD Ameritrade Investor Movement Index: IMX Reports Largest Decrease Amid Month of High Volatility
March 05 2018 - 12:30PM
Business Wire
Retail investors lessen exposure to equity
markets while continuing net buying activity
The February 2018 Investor Movement Index® reported a
significant drop to 5.95 as volatility returned to the market, 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 February 2018 Investor
Movement Index (Graphic: TD Ameritrade)
February IMX
The February 2018 Investor Movement Index for the four weeks
ending February 23, 2018, reveals:
- Reading: 5.95 (compared to 7.79 in
January)
- Trend direction: Negative
- Trend length: 2 month
- Score relative to historic ranges:
Middle
TD Ameritrade clients’ exposure to equity markets declined for a
second month in a row, resulting in an IMX reading of 5.95 – a 23
percent decrease from the prior month. The February period was
marked by increased volatility in the equity markets, which sharply
lowered the IMX to levels not seen since January 2017.
The bull market rally took a pause in February – the first
market correction in over two years – leading to decreased relative
volatility in widely held names, including Apple Inc. (AAPL) and
Facebook Inc. (FB). The selloff began following concerns about
rising bond yields and inflation, initiating declines worldwide and
causing all three major U.S. equity indices to enter correction
territory. The Dow Jones Industrial Average, S&P 500 and Nasdaq
Composite all decreased more than 10 percent off recent highs, with
the Dow recording its largest daily point loss in the history of
the index - 1,175 points. As market volatility continued during the
month, the VIX increased above 50 for the first time since August
2015.
“After the amazingly quiet 2017, we saw 2018 start with some
volatility,” said JJ Kinahan, chief market strategist at TD
Ameritrade. “It appears that TD Ameritrade clients decided to
significantly limit their volatility risk in the market, changing
their game plan from less speculative to more of a low beta
weighted one.”
TD Ameritrade clients appeared to use the pullback in equities
markets as a buying opportunity in February. General Electric Inc.
(GE) and Ford (F) were net buys as both companies neared multi-year
lows. Apple Inc. (AAPL) and Amazon Inc. (AMZN) were net buys,
despite reporting better than expected earnings then trading lower
following market volatility. Boeing Inc. (BA) traded higher
following better-than-expected earnings and was also a net buy.
Microsoft Corp. (MSFT) was a net buy after beating earnings and the
company’s success with its cloud computing and
software-as-a-service initiatives. Alibaba Group (BABA), which was
down almost 20 percent from recent highs during the period, was
also a net buy.
Additional popular names bought include Nvidia Corp. (NVDA),
Berkshire Hathaway Inc. (BRK.B) and Netflix Inc. (NFLX).
Despite being net buyers, TD Ameritrade clients found equities
to sell during the period. Gilead Sciences Inc. (GILD) was net sold
after reaching a 52-week high and receiving approval from the FDA
for a new HIV treatment. Facebook Inc. (FB) reached an all-time
high on better-than-expected earnings, and was net sold.
Bristol-Myers Squibb (BMY) was net sold after it reached an
18-month high following an analyst upgrade on immuno-oncology
growth prospects. Snap Inc. (SNAP) which reported a revenue
increase leading to increased share prices was also net sold.
Finally, Target Corp. (TGT) was net sold following an analyst
upgrade and increased price estimate.
Additional names sold include ConocoPhillips Corp. (COP), Juno
Therapeutics Inc. (JUNO), and Bioverativ Inc. (BIVV).
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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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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