OMAHA, Neb.--(BUSINESS WIRE)--The August 2017 Investor Movement Index® continued on an upward trajectory, reaching a new all-time-high reading of 7.45, 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 August 2017 Investor Movement Index for the four weeks ending August 25, 2017, reveals:
- Reading: 7.45 (compared to 7.09 in July)
- Trend direction: Positive
- Trend length: 4 months
- Score relative to historic ranges: High
TD Ameritrade clients remained steadfast net buyers during the month of August, resulting in one of the longest buying streaks – seven consecutive months – in the history of the IMX. Increased equity exposure from net buying, coupled with higher volatility in some widely held names, caused the August IMX to jump more than 5 percent from the prior month. The VIX increased 32 percent, while major indices reached record highs at the start of the month then dropped slightly – S&P 500 and Nasdaq Composite decreased by more than one percent. Finally, as geopolitical strife resulted in world-wide volatility, investors appeared to find additional buying opportunity in market pullbacks and positive earnings reports.
“Our clients’ decision to continue buying reflects the resiliency of the markets, even in the face of geopolitical tensions,” said JJ Kinahan, chief market strategist at TD Ameritrade.
TD Ameritrade clients used volatility in some large names as a buying opportunity in August. Amazon Inc. (AMZN) and Alphabet Inc. (GOOG) both saw pullbacks in share prices during the period, and were net buys. Costco Corp. (COST) traded down late in the period following the Amazon and Whole Foods announcement of decreased pricing, and was net bought. General Electric Inc. (GE) was also a net buy after trading at 52-week lows. AT&T Inc. (T), which saw its shares trend downward during the period, was also a net buy. Nvidia Inc. (NVDA) and Alibaba (BABA), both of which set all-time highs during the period and are up substantially year-over-year, were also net bought. Snap Inc. (SNAP), which traded at its lowest price since its IPO in March, was also a net buy. Additional popular names bought include Tesla Inc. (T), RiteAid (RAD) and Microsoft Inc. (MSFT).
Some popular and widely held names were also sold during the August period. Wells Fargo Inc. (WFC) continued to trade lower during the month following more negative headlines surrounding its predatory lending and was net sold. Twitter Inc. (TWTR), which continued to trade lower during the period and received an analyst downgrade, was also a net sell. Nike (NKE) was also a net sell following a drop in sales of sneakers at retailers like Foot Locker, with the stock down 8 percent during the period. General Motors (GM), despite announcing its own ride-hailing app during the period, was also a net sell. Frontier Communications Corp. (FTR) was a net sell following its continued downtrend over the past 52 weeks. Additional names sold include Arconic Inc. (ARNC) and Alcoa Inc. (AA).
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
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