Ongoing bullish activity from retail investors pushes IMX above 8 for first time ever
The November 2017 Investor Movement Index® hit a new all-time high of 8.53, TD Ameritrade, Inc. ("TD Ameritrade"), a broker-dealer subsidiary of TD Ameritrade Holding Corporation 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 have actually done and how they were positioned in the markets.
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TD Ameritrade November 2017 Investor Movement Index TD
The November 2017 Investor Movement Index for the four weeks ending November 24, 2017, reveals:
- Reading: 8.53 (compared to 7.40 in October)
- Trend direction: Positive
- Trend length: 2 months
- Score relative to historic ranges: High
The IMX had its largest single month increase ever in November—increasing over 15 percent—as TD Ameritrade clients were net buyers for a tenth consecutive month. Net buying, coupled with higher relative volatility in many widely held names, including Apple (AAPL) and General Electric (GE), helped raise the IMX by more than 15 percent.
The November period saw investors positioning their accounts for more exposure to equity markets as major market indices reach all-time highs, with the S&P 500 touching 2,600 for the first time ever. Increased projections for the U.S. economic growth from two Federal Reserve Banks also helped equity gains, following better-than-expected housing and industrial production data. Finally, the unemployment rate also edged down to 4.1 percent heading into the holiday shopping season, the lowest point since 2000.
"This IMX reading shows that investors had continued confidence in the market. They wanted exposure to the amazing rally in November as all three major indices hit all-time highs," said JJ Kinahan, chief market strategist at TD Ameritrade.
TD Ameritrade clients seemed to take an interest in some volatile blue chips during the November period. AT&T Inc. (T) was net bought following the U.S. Department of Justice suit to block the proposed AT&T and Time Warner merger. General Electric Inc. (GE), net bought, reached a 5-year low following a dividend cut.
Semiconductors remained popular in November. TD Ameritrade clients were net buyers of Nvidia Inc. (NVDA), Advanced Micro Devices Inc. (AMD) and Micron Technology Inc. (MU), with all three companies receiving analyst upgrades during the period.
The interest in Chinese online companies continued in November as Alibaba Group (BABA), JD.com (JD) and Tencent Holdings Ltd (TCEHY) were net bought, with Alibaba Group (BABA) and Tencent Holdings Ltd (TCEHY) both reaching 52-week highs during the period.
Finally, Tesla Inc. (TSLA) was net bought after showcasing its new commercial truck. Additional popular names bought include Square Inc. (SQ), Facebook Inc. (FB) and Paypal Holdings Inc. (PYPL).
Even with an increase in overall equity market exposure, TD Ameritrade clients did appear to find some attractive exit prices in November. Twitter Inc. (TWTR) traded to a 52-week high following positive earnings and expanding tweets to 280 characters, and was net sold. Costco Wholesale Corp. (COST) was net sold after trading higher on the back of optimistic projections for 2017 holiday sales. Qualcomm Inc. (QCOM), which rocketed higher following a proposed takeover by Broadcom Limited (AVGO), was net sold. Nike Inc. (NKE) was also net sold after announcing an increased dividend and elevated customer experience platform with Foot Locker Inc. (FL), and was net sold.
Oil and gas companies, including Conoco Phillips Corp. (COP), BP (BP) and Marathon Oil Corp. (MRO) were net sold, despite trading higher in the period. Additional names sold include Starbucks Corp. (SBUX), General Motors Company (GM) and Wells Fargo & Co (WFC).
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 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, or read our stories at Fresh Accounts.
Brokerage services provided by TDÂ Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPCÂ (www.SIPC.org).
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