Market Overview

TD Ameritrade Investor Movement Index: Bullish Retail Investors Push IMX Above 7.0 For First Time

Share:

OMAHA, Neb.--()--The July 2017 Investor Movement Index® reading set a new all-time-high record of 7.09, a mere five months after passing 6.0 for the first time in the history of the IMX, 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.

The July 2017 Investor Movement Index for the four weeks ending July 28, 2017, reveals:

  • Reading: 7.09 (compared to 6.58 in June)
  • Trend direction: Positive
  • Trend length: 3 months
  • Score relative to historic ranges: High

July marked a historic milestone for the IMX as it crossed 7.0 for the first time ever, in part due to retail investors’ bullish activity. TD Ameritrade clients were net buyers for the sixth consecutive month, seemingly positioning their accounts for increased exposure through equities, such as Amazon (AMZN) and Tesla (TSLA). Over this same period, major market indices climbed to new highs – Nasdaq, S&P 500 and Dow Jones Industrial Average posted positive gains – earnings reports were positive with over 70 percent of S&P 500 companies beating analyst estimates, and the VIX touched an all-time low of 8.84. Investors who closely followed the markets in July may have seen these events as opportunity to stay engaged and potentially grow their portfolios.

“As market indices reached new highs, we saw the IMX also reach new levels – breaking the 7.0 point for the first time ever,” said JJ Kinahan, chief market strategist at TD Ameritrade. “An indication that retail investors wanted to continue their involvement in this rally by slowly dialing up exposure to the equity market.”

For a third month, technology stocks were among TD Ameritrade clients’ top buys. Amazon.com, Inc. (NASDAQ: AMZN) and Microsoft Corporation (NASDAQ: MSFT) were net bought, as each posted record highs, and Amazon CEO Jeff Bezos briefly replaced Bill Gates as the richest person in the world. Tesla Inc. (NASDAQ: TSLA), which experienced volatility during the period as consumers awaited the release of the new Model 3, was also a net buy. Alibaba Holding Group Ltd (NYSE: BABA), which was said to be in talks regarding a funding round in Indonesia’s largest online marketplace, Tokopedia, was net bought. Consumer Defensive names Rite Aid Corporation (NYSE: RAD) and Costco Wholesale Corporation (NYSE: COST), each of which saw a pullback in share price during the period, were net buys. NVIDIA Corporation (NASDAQ: NVDA) was net bought after the shares posted an all-time high during the period. Additional popular names bought include AT&T Inc. (NYSE: T), General Electric Company (NYSE: GE) and Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL).

Despite net buying, TD Ameritrade clients chose to sell select stocks during July. Nike Inc (NYSE: NKE) was net sold after announcing it was starting a pilot program to sell directly through Amazon and reporting stronger than expected earnings. Alcoa Corp. (NYSE: AA) and Arconic Inc. (NYSE: ARNC) were net sold, as each saw positive upward momentum during the period. General Motors Company (NYSE: GM) was net sold following a better-than-expected quarterly net profit, which was helped by cost cuts and a promise to cut production. Wells Fargo & Co. (NYSE: WFC), which announced its plans to refund over 500,000 auto loan consumers for improper charges on auto insurance, was also net sold. Twitter Inc. (NYSE: TWTR), which saw volatility late in the period after a poorly received quarterly report, was a net sell. Additional names sold include Caterpillar Inc. (NYSE: CAT) and Mobileye NV (NYSE: MBLY).

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 May 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 Corporation

Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technologypeople 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, or read our stories at Fresh Accounts.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC (www.SIPC.org).

Contacts

TD Ameritrade Holding Corporation
For Media:
Christina Goethe, 201-369-8510
Communications & Public Affairs
christina.goethe@tdameritrade.com
@TDAmeritradePR
or
For Investors:
Jeff Goeser, 402-597-8464
Investor Relations
jeffrey.goeser@tdameritrade.com

Posted-In: IMX TD Ameritrade TD Ameritrade Investor Movement Index (IMX)News Press Releases

 

Related Articles (AMTD + AA)

View Comments and Join the Discussion!