OMAHA, Neb.--(BUSINESS WIRE)--The October 2017 Investor Movement Index® recovered from the prior month’s decline to reach a near-record high of 7.40, 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 have actually done and how they were positioned in the markets.
The October 2017 Investor Movement Index for the four weeks ending October 27, 2017, reveals:
- Reading: 7.40 (compared to 7.14 in September)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges: High
As TD Ameritrade clients were net buyers for a ninth consecutive month, the IMX rose nearly 4 percent from September to reach the second-highest reading in IMX history.
The October period was marked by strong U.S. markets, positive corporate earnings and a strengthening global economy, all of which seemed to influence the retail investor’s bullish behavior. Major market indices posted gains in October, with the Nasdaq Composite and Dow Jones Industrial Average both reaching new milestones- Nasdaq crossed 6,700 and Dow crossed 23,000. The S&P 500 had another month of low volatility, and the CBOE Volatility Index (“the VIX”) hovered around a modest 10 for a majority of the period.
“TD Ameritrade clients have continued to be net buyers and seem to be putting their money where they see opportunity,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Retail investors have increased their exposure to Chinese stocks, while taking profits in the energy sector as crude oil hits 52 week highs.”
Technology stocks remained popular in October, as TD Ameritrade clients were net buyers of semiconductor companies Nvidia Inc. (NVDA) and Micron Technology Inc. (MU). Nvidia Inc. (NVDA) continued its upward momentum, reaching all-time highs during the period, while Micron Technology Inc. (MU) reached a 52-week high following an analyst upgrade.
Continuing a trend from last month, TD Ameritrade clients were net buyers of Chinese stocks including Alibaba Group (BABA) and JD.com (JD). Additional popular names bought include General Electric Inc. (GE), Teva Pharmaceuticals Inc. (TEVA), Square Inc. (SQ) and Switch Inc. (SWCH).
Popular names in the oil sector, Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX), reported higher than expected earnings and were net sold by TD Ameritrade clients. Other oil and gas sector sells included BP (BP) and Conoco Phillips Corp. (COP).
TD Ameritrade clients were also net sellers of popular financial stocks including Wells Fargo & Co. (WFC) and Goldman Sachs Group Inc. (GS). Wells Fargo & Co. (WFC) was net sold for the fourth consecutive month after missing on earnings, while Goldman Sachs Group Inc (GS) beat earnings expectations and announced it is expanding its private-equity investment offerings.
Finally, Alphabet Inc. (GOOG) was net sold despite beating earnings expectations and trading above $1,000 per share for the first time ever. Additional names sold include Verizon Communications (VZ) and Bristol-Meyers Squibb (BMY).
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 (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, or read our stories at Fresh Accounts.
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