TD Ameritrade Investor Movement Index: IMX Breaks Streak of Record-Breaking Highs, Declines for First Time in Three Months
May 08 2017 - 11:41AM
Business Wire
Retail investors are net buyers, despite lower
exposure to equity markets
The April 2017 Investor Movement Index® reading fell for the
first time in three months, dropping to 6.06, 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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View the full release here:
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TD Ameritrade April 2017 Investor
Movement Index (Graphic: TD Ameritrade)
The April 2017 Investor Movement Index for the four weeks ending
April 28, 2017, reveals:
- Reading: 6.06 (compared to 6.22 in
March)
- Trend direction: Negative
- Trend length: 1 month
- Score relative to historic ranges:
High
TD Ameritrade client exposure to equity markets decreased as
there was lower relative volatility in widely held names, including
Apple Inc. (AAPL) and Facebook Inc. (FB). Volatility was modest
during the month, with a slight uptick in the volatility of the
S&P 500 Index early in the period. Markets posted losses early
in the month following poor economic data, yet rebounded at
month-end following strong earnings reports. Despite the negative
downtrend in April, TD Ameritrade clients were net buyers overall
in April with increased interest in the tech sector and dividend
stocks.
“Although this is the first decline in recent months, market
optimism appeared to remain strong as our clients were net buyers
for the fifth month in row. We saw a similar trend a year ago,
where retail clients lowered their equity exposure and the IMX
broke a seven month high streak,” said Victor Jones, director of
trading for TD Ameritrade. “A third of the S&P 500 will report
earnings in May, so we will see how much our clients stay engaged
in the markets.”
TD Ameritrade clients were net buyers of dividend stocks in the
April period, including AT&T Inc. (T) and Verizon (VZ), both of
which traded down following their earnings reports early in the
period. Clients were net buyers of Amazon Inc. (AMZN) and Facebook
Inc. (FB) with both stocks reaching all-time highs during the
period. Apple Inc. (AAPL) was net bought as the stock reached a
52-week high. Investors will likely keep an eye on the stock as the
company is expected to release the 10th anniversary iPhone later
this year. Finally, Plug Power Inc. (PLUG) was also a net buy
following a deal to sell $70 million of fuel-cell forklifts to
Amazon. Additional popular names bought in April included Dry Ships
Inc. (DRYS) and Berkshire Hathaway Inc. (BRK.B).
TD Ameritrade clients were net sellers of Consumer Goods and
Service companies during the April period. Starbucks Inc. (SBUX)
was net sold for a second month in a row, after an analyst upgrade
pushed the stock to a 52-week high. Panera Inc. (PNRA) was also net
sold after being acquired by JAB Holdings for $315 per share. Whole
Foods Market Inc. (WFM), a net sold, reached a 52-week high after
Jana Partners took nearly a 9% stake in the company. Finally, with
plans to launch a mobile money transfer app in partnership with
American Express Inc. (AXP), Walmart (WMT) stock reach a 52-week
high and was net sold. Net selling activity also occurred within
the Energy sector as ConocoPhillips Corp. (COP) and Kinder Morgan
Inc. (KMI) were net sold.
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 April 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, 201-369-8510Corporate
Communicationschristina.goethe@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor
Relationsjeffrey.goeser@tdameritrade.com
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