TD Ameritrade Investor Movement Index: IMX Rises as Investors React to Earnings Season
November 04 2019 - 12:30PM
Business Wire
Cautious investors increased exposure to equity
markets in October
The Investor Movement Index® (IMXSM) increased to 4.84 in
October, up 7.3 percent from its September score. The IMX is TD
Ameritrade’s proprietary, behavior-based index, aggregating 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 Oct. 2019 Investor Movement
Index (Graphic: TD Ameritrade)
The IMX reached its second-highest reading this year, with May
the highest at 4.93, yet the reading still ranks “Moderately Low”
compared to historic averages. The four-week period ending Oct. 25,
2019 continued a year-long trend of below-average IMX scores.
“October earnings went better than many anticipated, but there
was some cautiousness as SPX stalled under 3,000 for the sixth
continuous month,” said JJ Kinahan, chief market strategist at TD
Ameritrade. “While investors did increase exposure to equities
month-over-month, they continued to show caution with a strong
presence in fixed income, and will likely remain guarded as long as
the trade war continues to loom over the markets.”
Equity markets moved higher during October IMX period. The
S&P 500 was up 2 percent compared to September, with the Dow
Jones Industrial Average up 0.5 percent. The technology sector
outpaced the relative market, with the Nasdaq Composite up 3.8
percent during the October period. Early in the period, market
volatility increased as macroeconomic worries intensified following
poor manufacturing data. The jobless rate also fell to the 50-year
low of 3.5 percent. By the end of the period, 40 percent of the
S&P 500 had reported earnings, with 80 percent beating analyst
estimates.
Retail investors at TD Ameritrade found some popular names to
buy during the October IMX period, including:
- Amazon Inc. (AMZN)
- Walt Disney Co. (DIS)
- AT&T Inc. (T)
- Microsoft Corp. (MSFT)
TD Ameritrade clients continued to be net sellers of equities in
October, net selling popular names such as,:
- Apple Inc. (AAPL)
- Tesla Inc. (TSLA)
- Facebook Inc. (FB)
- Netflix Inc. (NFLX)
Millennial Buys & Sells In October, there were some
key differences in the stocks TD Ameritrade’s millennial clients
net bought. Millennials net bought Aurora Cannabis Inc. (ACB),
Altria Group Inc. (MO) and Starbucks Corp. (SBUX), while the total
client population did not.
On the sell side, unlike the total client population,
millennials net sold Alphabet Inc. (GOOG) and Rite Aid Corp.
(RAD).
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 more than 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 January 2010; to view the full
report from September 2019; 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. All investments involve risk including the possible loss of
principal. Please consider all risks and objectives before
investing.
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.
About TD Ameritrade Holding Corporation TD Ameritrade
provides investing services and education to approximately 12
million client accounts totaling approximately $1.3 trillion in
assets, and custodial services to more than 7,000 registered
investment advisors. We are a leader in U.S. retail trading,
executing an average of approximately 800,000 trades per day for
our clients, more than a quarter of which come from mobile devices.
We have a proud history of innovation, dating back to our start in
1975, and today our team of 10,000-strong is committed to carrying
it forward. Together, we are leveraging the latest in cutting edge
technologies and one-on-one client care to transform lives, and
investing, for the better. Learn more by visiting TD Ameritrade’s
newsroom at www.amtd.com, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org) / SIPC (www.SIPC.org)
Source: TD Ameritrade Holding Corporation
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version on businesswire.com: https://www.businesswire.com/news/home/20191104005082/en/
At the Company Becky Niiya
Director, Corporate Communications (402) 574-6652
rebecca.niiya@tdameritrade.com
Jeff Goeser Managing Director, Investor Relations (402) 597-8464
jeffrey.goeser@tdameritrade.com
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