IMX increased for a sixth consecutive month, the longest upward trend
in nearly two years
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
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
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.
For the latest TD Ameritrade news and information, follow the Company on
About TD Ameritrade Holding Corporation
investors and independent registered investment advisors (RIAs) have
turned to TD Ameritrade’s (NYSE:AMTD) technology,
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
for more information.
Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org)/SIPC
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20140407005944/en/
Source: TD Ameritrade Holding Corporation