TD Ameritrade's IMX Declines: Equity Market Exposure Decreased, Net Buying Favored Tech
TD Ameritrade released Investor Movement Index (IMX) sentiment data for April 2014, trending down for the first time in seven months.
In April, the IMX declined to 5.67 while remaining at the high end of the historical range. The report stated, "TD Ameritrade clients were net buyers overall. Net buying activity favored the technology and services sectors, while the consumer goods and basic materials sectors saw net selling. Clients were also net buyers of fixed-income products, including fixed-income ETFs and mutual funds."
Equity market exposure declined in April, where portfolio compositions were less volatile relative to the S&P 500. The report noted that this lowered sensitivity to the equity markets, therefore driving down the IMX.
Net buying favored the technology sector, with purchases in Facebook (NASDAQ: FB), Google (NASDAQ: GOOG) and Yahoo (NASDAQ: YHOO). The service sector saw popular buys of Amazon.com (NASDAQ: AMZN) and The Walt Disney Company (NYSE: DIS). Other popular trading names in April included Gilead Sciences (NASDAQ: GILD), Whole Foods Market (NASDAQ: WFM) and Verizon Communications (NYSE: VZ).
Following recent stock gains, investors engaged in profit taking of Cisco Systems (NASDAQ: CSCO), Intel (NASDAQ: INTC), Oracle (NYSE: ORCL), Alcoa (NYSE: AA), ExxonMobil (NYSE: XOM) and Chesapeake Energy (NYSE: CHK). Other popular names sold include Caterpillar (NYSE: CAT), American Airlines Group (NASDAQ: AAL) and Altria Group (NYSE: MO), according to the report.
The Investor Movement Index (IMX) is a sentiment based index created by TD Ameritrade to reflect how retail investors are positioned in the markets. TD Ameritrade uses data from a sample of its six million funded client accounts to create an individual score issued monthly.
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