TD Ameritrade's Investor Movement Index: Clients Were Net Buyers of Equities in May
07 June 2016 - 2:30AM
Business Wire
IMX recorded its largest ever single-month
increase in May
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 May 2016.
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.
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TD Ameritrade's Investor Movement Index
(IMX) vs. S&P 500 (Photo: TD Ameritrade).
The May 2016 Investor Movement Index for the four weeks ending
May 27, 2016, reveals:
- Reading: 4.87 (compared to 4.41 in
April)
- Trend direction: Positive
- Trend length: 2 months
- Score relative to historic ranges:
Middle
The IMX recorded its largest ever single-month increase in May,
growing 0.46 to 4.87.
TD Ameritrade clients were net buyers of equities in May which
helped to increase the IMX. Because the IMX measures portfolio
volatility relative to overall market volatility, rising volatility
of some of the more widely held positions paired with relatively
stable market conditions further increased the IMX. Net buying in
some of those same widely held names whose relative volatility rose
also had a compounding effect on the IMX score, resulting in the
largest increase in the score since reporting began.
“The difference between April and May shows the largest positive
jump we’ve ever seen in the IMX since our reporting began in 2010,”
said Nicole Sherrod, managing director of trading, TD Ameritrade.
“This was spurred by a rise in major indices and our clients taking
advantage of price dips in popular stocks like Apple Inc. (AAPL)
and Netflix.com Inc. (NFLX).”
The major equity market indices each ended May above where they
began, but only after slight declines during the month. The S&P
500 and Russell 2000 were both up over 1.5% for the month, while
the NASDAQ Composite increased more than 3%. The Dow Jones
Industrial Average saw the smallest increase, closing just a half a
percent higher than where it began in May. The release of the
minutes from the Federal Reserve Board meeting in April seemed to
cause some mixed reactions mid-month. The equities market reacted
in see-saw fashion and Treasury prices fell after the minutes
seemed to indicate the Fed may be more open to raising their key
rate than was previously thought. Fed futures markets seemed to
change their expectations as well, with the CME’s FedWatch tool
showing a nearly 25% probability of a rate increase in June – up
from less than 6% a month ago.
Well-known names that have seen recent price pressure were
popular net buys in TD Ameritrade client accounts in May. Apple
Inc. (AAPL) was a net buy for the period as the stock trended
downward until mid-month following an unfavorable earnings
announcement late last month. Netflix.com Inc. (NFLX) was a net buy
for TD Ameritrade clients during the period and also saw pressure
until mid-month. Each company’s share price rebounded toward the
end of the period. Starbucks Corp. (SBUX) saw some downward
pressure in May and found more clients buying than selling.
Facebook Inc. (FB), which has traded to new highs this year but was
largely range bound during the month, was a net buy as well.
The May IMX period saw net selling in oil producers ExxonMobil
Corp. (XOM) and Halliburton Company (HAL) as their prices continued
to rally from year-to-date lows set at the beginning of the year.
The companies were net buys during the end of 2015 and in the
beginning of 2016 as the price of crude oil slumped below $40 a
barrel. In the financial sector Bank of America Corp. (BAC) was net
sold as its shares appeared to find a level of support during the
month. Digital payments company PayPal Holdings Inc. (PYPL) was
also net sold in May.
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 May 2016, 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 CorporationMillions 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. 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 or
www.amtd.com for more information.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org)
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version on businesswire.com: http://www.businesswire.com/news/home/20160606006010/en/
TD Ameritrade, Inc.For Media:Beth Evegan,
859-331-2391Communications & Public
Affairsbeth.evegan@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
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