TD Ameritrade Investor Movement Index: IMX Sets New Record High For Second Consecutive Month

Retail investors are net buyers as indices continue to hit record highs

TD Ameritrade’s IMX reading for March 2017 (Graphic: TD Ameritrade)

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OMAHA, Neb.--()--TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (Nasdaq:AMTD), is today releasing the Investor Movement Index® reading for March 2017. 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 2017 Investor Movement Index for the five weeks ending March 31, 2017, reveals:

  • Reading: 6.22 (compared to 6.15 in February)
  • Trend direction: Positive
  • Trend length: 3 month
  • Score relative to historic ranges: High

The March IMX increased to a record high for the second consecutive month, reaching 6.22 and exceeding the previous record set in February. TD Ameritrade clients continued to be net buyers for a third month, increasing exposure to equity markets as indices rallied to new highs in early March then pulled back near the end of the month. Clients saw the slight market pullback as an opportunity to increase equity exposure. Clients also saw the Snapchat IPO as a buying opportunity in March.

“The IMX saw a slight uptick in March, reaching a record territory once again,” said JJ Kinahan, chief market strategist for TD Ameritrade. “Our clients continue to see good reason to stay highly engaged in the markets as we approach corporate earnings and policy decisions in DC.”

TD Ameritrade clients were net buyers of Snap, Inc. (SNAP) after eagerly awaiting the social network’s IPO at beginning of March. Nvidia (NVDA) and Chesapeake Energy Corp. (CHK) were both net buys, as well as Advanced Micro Devices (AMD) who reached a 52-week high early in the month. Berkshire Hathaway Inc. (BRK.B) and Bank of America (BAC) were net buys despite having selloffs at the end of the period. Additional popular companies that were bought during March include STMicroelectronics (STM), Dry Ships Inc. (DRYS) and Exxon Mobil Corp. (XOM).

After reaching a 52-week high in the previous period, Arconic Inc. (ARNC) was once again net sold in March. Alibaba Group Holding (BABA) posted a year-high during the March IMX period, however, was still a top sell for TD Ameritrade clients. Walt Disney Co. (DIS) was also a top net sell, despite its remake of “Beauty and the Beast” selling over $750 million in tickets worldwide and helping the stock price reach a 52-week high. Starbucks (SBUX) was also a net sell as the company saw significant volatility after the CEO announced his departure from the company. Technology companies Hewlett Packard Co. (HPE) and Cisco Systems Inc. (CSCO), each of which saw share price increases during the period, were net sold. Following concern regarding overseas tax practices, Caterpillar Inc. (CAT) was also among the top stocks sold. Additional popular names sold include Yahoo Inc. (YHOO) and Kinder Morgan Energy (KMI).

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 March 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) 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.

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

Contacts

TD Ameritrade Holding Corporation
For Media:
Kim Hillyer, 402-574-6523
Communications & Public Affairs
kim.hillyer@tdameritrade.com
@TDAmeritradePR
or
For Investors:
Jeff Goeser, 402-597-8464
Investor Relations
jeffrey.goeser@tdameritrade.com

Contacts

TD Ameritrade Holding Corporation
For Media:
Kim Hillyer, 402-574-6523
Communications & Public Affairs
kim.hillyer@tdameritrade.com
@TDAmeritradePR
or
For Investors:
Jeff Goeser, 402-597-8464
Investor Relations
jeffrey.goeser@tdameritrade.com