TD Ameritrade clients used market volatility to once again increase exposure, favoring buys in the Information Technology and Consumer Discretionary sectors

The Investor Movement Index® (IMXSM) increased to 5.71 in September, up 15.82 percent from its August score of 4.93. 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 September 2020 Investor Movement Index (Graphic: TD Ameritrade)

The reading for the four-week period ending September 30, 2020, ranks “Middle” compared to historic averages.

“In September, TD Ameritrade clients took advantage of the market volatility to increase exposure to the highest levels we have seen this year,” said JJ Kinahan, chief market strategist at TD Ameritrade. “While headlines concerning the economic recovery were a mixed bag, our clients saw buying opportunities in the Information Technology and Consumer Discretionary sectors.”

Early in the period, the S&P 500 and the Nasdaq Composite reached new highs, but gains were short-lived. Late in the period, losses picked up steam as hopes for additional fiscal stimulus dimmed and new coronavirus cases rose nationally. U.S. employers added 1.4 million jobs in August, pushing the unemployment rate down to 8.4 percent, but unemployment claims also held steady during the period, a sign for many investors that the U.S. labor-market recovery is losing steam six months into the pandemic. As the U.S. death toll topped 200,000, Johnson & Johnson Co. (JNJ) became the fourth company to announce its experimental coronavirus vaccine had entered final-stage testing in the U.S. Federal Reserve officials projected no plans to raise interest rates through 2023 and said they were committed to providing more support to an economy that faces an uneven recovery from the coronavirus pandemic.

Once again, TD Ameritrade clients were net buyers of equities and net buyers overall. Some of the most popular names bought during the period were:

  • Tesla, Inc. (TSLA)
  • Apple Inc. (AAPL)
  • Walmart Inc. (WMT)
  • Amazon Inc. (AMZN)
  • DocuSign Inc. (DOCU)

Names net sold during the period included:

  • Uber Technologies Inc. (UBER)
  • Delta Air Lines Inc. (DAL)
  • Twitter (TWTR)
  • Ford Motor Co. (F)
  • Snapchat Inc. (SNAP)

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 13 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 2020; 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 thinkorswim Mobile 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 13 million client accounts totaling approximately $1.5 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing more than 3 million daily average revenue trades per day for our clients, one-third 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 nearly 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

Margaret Farrell Sr. Manager, Corporate Communications (203) 434-2240 margaret.farrell@tdameritrade.com

Jeff Goeser Managing Director, Investor Relations (402) 597-8464 jeffrey.goeser@tdameritrade.com

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