Investors were net buyers, but adjusted
exposure during late-month market ride
TD Ameritrade1 has released the Investor Movement Index® reading
for August 2015. 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.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20150908006294/en/
The August 2015 Investor Movement Index for the four weeks
ending August 28, 2015, reveals:
- Reading: 5.24 (compared to 5.39 in
July)
- Trend direction: Negative
- Trend length: 1 month
- Score relative to historic ranges:
Moderately High
The IMX dropped 2.78 percent to 5.24 in August as retail
investors slightly decreased their exposure to the U.S. equity
markets. Overall, investors were net buyers, finding opportunities
in names that were less volatile despite the late month market
shake-up. In addition, many of the widely held positions in TD
Ameritrade client accounts were lower BETA equities than the market
in general. They adjusted their exposure to volatility as a whole,
at the same time participating in the post sell off bounce.
By the middle of 2015 the IMX had seen several increases, as
equity market volatility had reduced to near historical levels
while the market continued its upward trend. But August saw a
slight reversal in the reading as clients managed risk by finding
some havens in positions less volatile than the broader
markets.
“Volatility roared in at the end of the month, yet investors
remained calm and looked for opportunities – strategically rotating
some of their equity exposure to lower BETA and, in some cases,
higher yield equities to account for market fluctuation,”
said Nicole Sherrod, managing director of trading for TD
Ameritrade.
Concerns of a global economic slowdown, a devaluation of the
Chinese Yuan and speculation around the Federal Reserve rate hike
contributed to declines in all of the major equity market indexes.
Sherrod added, “For months the VIX has been at relatively low
levels, so when things got rocky in the equity markets – our
clients maintained composure, managed their risk and quickly bought
into dips in the market.”
Buy HighlightsTwitter Inc. (TWTR) traded down to near its
IPO price of $26 per share and was a net buy. Walt Disney Co. (DIS)
was also a net buy after it dipped below its 50-day moving average
following a mixed earnings report that included lower future
subscriber expectations and warnings of foreign currency valuations
affecting future profits. Netflix.com Inc. (NFLX), whose stock
price had declined over 20 percent in August and then regained some
of its value near the end of the month, was also a popular net buy.
AT&T Inc. (T), which had traded lower since approaching its
52-week high in June, was a net buy. Additional popular names
bought included Freeport-McMoran Inc. (FCX) and Exxon Mobil Corp.
(XOM).
Sell HighlightsEven with the markets under pressure, TD
Ameritrade clients appeared to find some key names to take profits
in. Sirius XM Holdings Inc. (SIRI) was a net sell as it appeared to
reach a key level of resistance around $4 per share. Citigroup Inc.
(C) hit a new 52-week high in July and maintained itself near that
level into August; TD Ameritrade clients were net sellers.
McDonald’s Corp. (MCD) and Delta Air Lines Inc. (DAL), both of
which have been range bound in 2015, were also net sells.
McDonald’s had reached the high end of its range in mid-August.
Additional popular names sold included Yahoo Inc. (YHOO) and
Alcatel-Lucent (ALU).
During the August IMX period the Russell 2000, Dow Jones
Industrial Average and NASDAQ Composite were all off around 6
percent, while the S&P 500 fared the best with a 5.5 percent
decline. Volatility of the S&P 500 as measured by the VIX was
within its historical norms for the first three weeks of the month
but began to rise at the end of the third week and closed above 40
to begin the fourth week, something it hadn’t done since November
2011.
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 6 million funded accounts that 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 August 2015, 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.
For the latest TD Ameritrade news and information, follow the
Company on Twitter, @TDAmeritradePR.
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.
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment
advisors (RIAs) have turned to TD Ameritrade’s (NYSE: 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 –
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well as an official sponsor of the National Football League for the
2014, 2015 and 2016 seasons, 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)
1TD Ameritrade, Inc. (“TD Ameritrade”) is a broker-dealer
subsidiary of TD Ameritrade Holding Corporation (NYSE:
AMTD)
Source: TD Ameritrade Holding Corporation
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150908006294/en/
TD Ameritrade Holding CorporationFor Media:Beth Evegan,
201-369-5930Communications & Public
Affairsbeth.evegan@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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