Clients were net sellers and positioned themselves for more exposure amid volatility lows

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 August 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.

This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20160906006056/en/

TD Ameritrade's IMX vs. S&P 500 (Credit: TD Ameritrade)

The August 2016 Investor Movement Index for the four weeks ending August 26, 2016, reveals:

  • Reading: 5.26 (compared to 4.69 in July)
  • Trend direction: Positive
  • Trend length: 1 month
  • Score relative to historic ranges: Moderately High

The IMX rose 12.15 percent – its largest ever single month increase – to 5.26 in August as retail investors positioned their accounts for more exposure as the volatility of the S&P 500 reached its lowest point since 2014. Because the IMX measures portfolio volatility relative to overall market volatility, higher relative volatility in widely held names like Apple Inc. (AAPL) and Facebook Inc. (FB) had a compounding effect on the rising IMX score.

“Clients were net sellers in August, scouting opportunities to take some profits after the market rebounded to all time highs,” said JJ Kinahan, chief market strategist for TD Ameritrade. “The slowness of the market in combination with lower overall volatility led our clients to names they know. The overall message at the end of the month from Reserve Chair Yellen also led investors to names they know in that she said an improving labor market and a strengthening economy might warrant another increase to the Fed’s key interest rate, but that remains to be seen, especially when you add in the presidential election component in just a couple months.”

Despite being net sellers overall in August, investors were net buyers of some popular names. Facebook Inc. (FB) set a new all-time high for the second month in a row, and continued to be a net buy for TD Ameritrade clients. Clients appeared to see some opportunity in dividend paying issuers who have seen recent declines as well. Both Ford Motor Company (F), which has been a popular net buy for the last few months, and Pfizer Inc. (PFE) were net bought in client accounts. Ford’s yield is greater than 4%, while Pfizer yields nearly 3.5%. Earnings announcements also continued to gather some attention into August. In the technology sector, Nvidia Corp. (NVDA) was a net buy up to and following its earnings report. Additional popular names bought included Bristol-Myers Squibb (BMY) and Wells Fargo & Co. (WFC).

Being net sellers this past month, TD Ameritrade clients found attractive exit prices in several widely held positions. Bank of America Corp. (BAC) was net sold as the company’s share price was up nearly 9% at the close of the August IMX period. Alibaba Group Holdings Ltd. (BABA), which reported earnings in August and saw gains following the announcement, was net sold as well. Microsoft Corp. (MSFT) set a new all-time high in August and Yahoo Inc. (YHOO) reached a year-to-date high. Both were net sold in TD Ameritrade client accounts. Additional popular names sold included Alphabet Inc. (GOOG, GOOGL), Citigroup Inc. (C), and Caterpillar Inc. (CAT).

During the August IMX period the major equity market indices saw mixed results, with the NASDAQ gaining 1.48% and the Russell 2000 adding 1.1%. The S&P 500 and Dow Jones Industrial Average were essentially flat with both declining about two-tenths of a percent. Crude oil prices increased in August, following a decline in July, and briefly touched $49 a barrel before declining to close out the month. Treasury yields remained largely unchanged during the month.

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 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 August 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)

TD Ameritrade Holding CorporationFor Media:Beth Evegan, 859-331-2391Communications & Public Affairsbeth.evegan@tdameritrade.com@TDAmeritradePRorFor Investors:Jeff Goeser, 402-597-8464Investor Relations & Financejeffrey.goeser@tdameritrade.com

TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more TD Ameritrade Charts.
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more TD Ameritrade Charts.