OMAHA, Neb.--(BUSINESS WIRE)--TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD), is today revealing the Investor Movement Index® reading for March 2014. 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 March 2014 Investor Movement Index for the four weeks ending March 28, 2014, reveals:
- Reading: 5.87 (compared to 5.74 in February)
- Trend direction: Positive
- Trend length: 6 months
- Score relative to historic ranges: High
March’s IMX reading rose for the sixth consecutive month and above the previous record high of 5.74 set in February 2014. The S&P 500 climbed to a new record early in March, but then took a few steps down to eventually close the month relatively flat compared to February. Overall, TD Ameritrade clients were net buyers in March as they continued to increase their exposure to the equity markets. Net buying activity was strongest during the second week of March, when the S&P 500 declined amid rising political tensions over Crimea and concerns of a potential economic slowdown in China. The technology and healthcare sectors were popular buys, while consumer goods stocks were net sold. Net selling in mutual funds and ETFs that focus on International stocks continued as well.
Biotech and social media stocks were volatile in March, and clients seemed to view the declines as a buying opportunity for some specific names, including Gilead Sciences (GILD) and Facebook (FB). Green energy companies – such as Fuel Cell (FCEL) and Plug Power (PLUG) – were also popular buys in March. Well-known dividend-paying names including Kinder Morgan Energy Partners (KMP), Kinder Morgan Inc. (KMI), and Verizon (VZ) saw net buying activity; all three had dividend yields over 4%.
Selling in the consumer goods sector was largely led by net selling in Apple (AAPL), which was range-bound over the month. Issuers trading at or near their 52-week highs were also popular sells. These included Caterpillar (CAT), Alcoa (AA), and Microsoft (MSFT). Although clients were net buyers of the technology sector overall, some widely held technology names were net sold, including Intel (INTC) and International Business Machines (IBM). International Business Machines (IBM) has recently risen from the low end of a two-year range.
“Our clients have been dialing up equity market exposure and participating in the rally every step of the way,” said JJ Kinahan, chief strategist, TD Ameritrade. “This is the longest consecutive upward trend we have seen in the IMX since March 2011.”
The IMX value is calculated based on a complex proprietary formula. Each month, TD Ameritrade pulls a sample from its client base of 6 million funded accounts that 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 March 2014, 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.
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About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE: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 37 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, 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.