|[August 04, 2014]
TD Ameritrade's Investor Movement Index: IMX Jumps to Second-Highest Reading Since Inception
OMAHA, Neb. --(Business Wire)--
TD Ameritrade, Inc. ("TD Ameritrade"), a broker-dealer subsidiary of TD
Ameritrade Holding Corporation (NYSE: AMTD), is today releasing the
Investor Movement Index® reading for July 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 July 2014 Investor Movement Index for the four weeks ending July 25,
Reading: 5.85 (compared to 5.67 in June)
Trend direction: Positive
Trend length: 1 month
Score relative to historic ranges: High
remained relatively flat from April 2014 through June 2014, but then
jumped higher in July and came in at 5.85, which was near the March 2014
high of 5.87. TD Ameritrade clients increased their equity market
exposure in July as new all-time highs were hit by major indexes
including the S&P 500, Nasdaq Composite, Dow Jones Industrials, and the
Russell 2000. Volatility remained low in the large cap indexes, as they
seemed range-bound amid geopolitical tensions related to Ukraine and the
Middle East. However, the Russell 2000 small cap index had declined 6
percent as of July 25 from the July 3 high.
"We saw individual investors increase their exposure to the equity
market in time with the major indexes at record highs," said JJ Kinahan,
chief strategist, TD Ameritrade. "Our clients have been engaged and
logging into their accounts ready to react to the latest earnings
announcements and market events."
Net buying activity was spread across several sectors in July, and
clients were net buyers overall. GoPro (News - Alert) (GPRO), which held its IPO at the
end of June, was a popular buy as clients began to build positions in
it. Gilead Sciences Inc. (GILD) dipped in July, but then continued its
trend higher as clients bought shares of the biotech firm. Clients were
also net buyers of Yahoo Inc. (YHOO), which has been range bound for the
last few months. Another popular buy was Whole Foods Market (WFM); the
stock continued to trade lower in July and some clients treated the
decline as a buying opportunity, adding shares to their portfolios.
Although clients were net buyers overall, both the technology and
financial sectors were net sold, and selling activity was similar to
last month. Within the technology sector many clients were net sellers
of Intel Corp (INTC), Facebook (News - Alert) (FB), CISCO Systems (CSCO), and Microsoft
Corp. (MSFT). Selling acivity in the financial sector included Bank of
America (BAC) and Citigroup (C). However, each of these technology and
financial sector stocks continue to be widely held by TD Ameritrade
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 July 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
Twitter (News - Alert), @TDAmeritradePR.
Source (News - Alert): TD Ameritrade Holding Corporation
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 39
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
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