TD Ameritrade Investor Movement Index: IMX Drops for a Third Month as Markets Experience Ongoing Volatility
April 09 2018 - 12:30PM
Business Wire
Despite geopolitical and tech sector fears,
retail investors remained optimistic
The March 2018 Investor Movement Index® hit its lowest point in
nearly two years, dropping 12 percent from the month prior to 5.22,
TD Ameritrade, Inc.1 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 actually were doing and how they
were positioned in the markets.
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TD Ameritrade March 2018 Investor
Movement Index (Graphic: TD Ameritrade)
March IMX
The March 2018 Investor Movement Index for the four weeks ending
March 30, 2018, reveals:
- Reading: 5.22 (compared to 5.95 in
February)
- Trend direction: Negative
- Trend length: 3 month
- Score relative to historic ranges:
Moderately Low
As volatility shook up the market, TD Ameritrade clients seemed
to display optimism in the state of the economy by continuing net
buying activity in March. Despite being net buyers, client accounts
experienced reduced exposure to equity markets as relative
volatility in widely held names, including Amazon Inc. (AMZN) and
General Electric Co. (GE), decreased during the month.
“March’s market sell-off continued with news of a potential
trade war between the U.S. and China, followed by a data breach
involving Facebook that impacted millions of users,” said JJ
Kinahan, chief market strategist at TD Ameritrade. “Clients
navigated the markets by dialing back exposure and rotating out of
popular stocks - such as Facebook - which has been a primary
holding for many clients including millennials.”
TD Ameritrade clients bought the market on the dip in March. Top
net buys included:
- Amazon Inc. (AMZN) and Netflix Inc.
(NFLX), both of which ended the month down more than 15
percent.
- General Electric Co. (GE), as shares
fell below $13 for the first time since 2009.
- Exxon Mobil Corp. (XOM), as oil prices
reached the highest levels since early February.
- Intel Corp. (INTC), which traded higher
during the month following reports of a possible takeover of
Broadcom.
- Boeing (BA), which reached an all-time
high early in the period then traded lower on fears of a trade
war.
Despite being net buyers, TD Ameritrade clients found equities
to sell during the period, including:
- Facebook, Inc. (FB), which was down
nearly 25 percent in March from yearly highs following concerns of
data privacy.
- Parker-Hannifin Corp. (PH), following a
lower analyst price target and subsequent stock selloff.
- WYNN Resorts, Limited (WYNN), after the
stock traded higher following the embattled co-founder and former
CEO, Steve Wynn, selling his stake in the company.
- Western Digital Corp. (WDC), following
an analyst upgrade.
While market indices stabilized at the start of April, ongoing
news about tariff threats continued to drive market volatility. As
investors figure out how to position themselves for the rest of
April, they will look for guidance from corporate earnings. In
particular, earnings conference calls will be a focus as CEOs share
their input on the economy and consumer demand.
“Based on geopolitical statements, there is no reason to believe
that volatility will significantly stop throughout the next month
given the time frames on tariffs,” said JJ Kinahan, chief market
strategist at TD Ameritrade. “We will most likely not see any
certainty out of what will actually be implemented until well after
April.”
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 11 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 March 2018; 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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