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TD Ameritrade Investor Movement Index: Elevated Volatility in April Pushes IMX to Lowest Point Since 2016

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While markets struggled to sustain gains, strong earnings reports
drove retail investor engagement in the markets

The Investor Movement Index® declined for a fourth
consecutive month in April 2018, slipping 8 percent from the prior month
to 4.79, TD Ameritrade, Inc.1 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
actually were doing and how they were positioned in the markets.

This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180507005475/en/

TD Ameritrade April 2018 Investor Movement Index (Graphic: TD Ameritrade)

TD Ameritrade April 2018 Investor Movement Index (Graphic: TD Ameritrade)

April IMX

The April 2018 Investor Movement Index for the four weeks ended April
27, 2018 reveals:

  • Reading: 4.79 (compared to 5.22 in March)
  • Trend direction: Negative
  • Trend length: 4 month
  • Score relative to historic ranges: Moderately Low

As U.S. markets continued to experience elevated volatility relative to
what has been experienced in recent years, TD Ameritrade clients lowered
their overall exposure to equity markets, causing the IMX to drop in
April. However, they still showed interest in a few specific names,
including Apple Inc. (AAPL) and Amazon.com, Inc. (AMZN).

"Clients seemed to use the continued climb in oil prices to the 70
dollar level as an opportunity to rotate out of oil names, such as
Transocean Ltd. and National Oilwell Varco, Inc., while the millennial
population chose not to reduce exposure to energy stocks this month,"
said JJ Kinahan, chief market strategist at TD Ameritrade.

TD Ameritrade clients were net buyers of some volatile names during the
April IMX period, including:

  • Netflix, Inc. (NFLX), for a third consecutive month and following
    better than expected earnings.
  • Amazon.com, Inc. (AMZN), for a fifth consecutive month and after
    beating earnings.
  • AT&T Inc. (T), as the company traded lower following an earnings miss.
  • Spotify Technology S.A. (SPOT), following the company's IPO early in
    the period.
  • Advanced Micro Devices, Inc. (AMD), as the company beat its
    anticipated earnings.
  • Square, Inc. (SQ), as the company announced it would acquire the
    technology company, Weebly, Inc.

Despite being net buyers, TD Ameritrade clients found equities to sell
during the period, including:

  • ConocoPhillips (COP), as oil prices traded near 3-year highs on higher
    global demand.
  • BP p.l.c. (BP), as it traded at multi-year highs.
  • Transocean Ltd. (RIG) and National Oilwell Varco, Inc. (NOV), as both
    reached 52-week highs.
  • Alcoa Corporation (AA), after trading at new highs following proposed
    tariffs on steel and aluminum.

Markets continued to be volatile at the start of the April period as
attention shifted from geopolitical tensions to earnings season. While
elevated volatility carried over from March into April, the Cboe
Volatility Index (VIX) retreated to monthly lows as the S&P 500 broke
through what had previously been a major upside resistance level. This
quickly changed as the yield on the key 10-year Treasury note was
finally able to establish itself above the 3 percent level. As a result
of this and tepid forecasts from CEOs, markets quickly fell lower and
the VIX increased once again.

"Investors will likely continue to monitor corporate earnings, likely
paying close attention to CEO comments, in addition to economic data
pointing to inflationary pressures building in the economy for the
remainder of May," said Kinahan.

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 11
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 April 2018; 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

TD Ameritrade provides investing
services
and education
to more than 11 million client accounts totaling $1.2 trillion in
assets, and custodial
services
to more than 6,000 registered investment advisors. We are a
leader in U.S. retail trading, executing an average of more than 940,000
trades per day for our clients, nearly a quarter 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 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
.

1TD Ameritrade, Inc. is a broker-dealer subsidiary of TD
Ameritrade Holding Corporation. Brokerage services provided by
TD Ameritrade, Inc., member FINRA (www.FINRA.org)
/SIPC (www.SIPC.org)

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