Retail investors were net buyers in December
and overall for the year
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 December
2016 and a summary of the year overall.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170109005140/en/
TD Ameritrade's IMX (Graphic: TD
Ameritrade)
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 December 2016 Investor Movement Index for the five weeks
ending December 30, 2016, reveals:
- Reading: 5.48 (compared to 5.53 in
November)
- Trend direction: Negative
- Trend length: 2 months
- Score relative to historic ranges:
High
The IMX fell 0.87 percent to a score of 5.48 as markets reached
all-time highs. Exposure to the equities markets within TD
Ameritrade accounts declined minimally in December, despite clients
being net buyers. This reduction was primarily driven by lower
relative volatility in some widely held names like Apple Inc.
(AAPL) and General Electric Co. (GE).
“2016 started with double-digit losses and concluded with
double-digit gains in the market. Our clients steadily increased
their exposure on the downturns and are well positioned for 2017,”
said Steve Quirk, Executive Vice President of the Trader Group.
As the holiday shopping season reached its peak in December,
Amazon.com Inc. (AMZN) was a net buy. This is the third month in a
row TD Ameritrade clients were buyers of Amazon, as well as of
Facebook Inc. (FB). Teva Pharmaceutical (TEVA) and Dry Ships Inc.
(DRYS), which have both seen declines in share price recently, were
net buys. Bank of America Corp. (BAC), which appeared to stabilize
following a dramatic increase after the presidential election last
month, was also a net buy. Nvidia Corp. (NVDA), which was in the
news as one of the best-performing stocks in the S&P 500, was
also a popular buy.
Widely held Apple Inc. (AAPL) was net sold during the December
IMX period as it traded up toward its year-to-date high. Energy
sector issuers ConocoPhillips Corp. (COP) and Chevron Corp. (CVX)
were net sold as their share prices appeared to match gains in
crude oil prices, which rose above $50 for the first time since
October. Wells Fargo & Co. (WFC) and Citigroup Inc. (C) were
also net sold as each reached new year-to-date highs in December.
Dividend payers Alcoa Corp. (AA) and Ford Motor Co. (F) were net
sold as well.
The Look Back at 2016
TD Ameritrade clients were net buyers overall in 2016,
increasing their equity positions heading into 2017. The most
popular buys of these investors over the past year were Amazon
(AMZN), followed by Facebook (FB). Valeant Pharmaceuticals
(VRX), Gilead Sciences (GILD), and Alphabet (GOOG) rounded out
the ranks of the top five stocks bought.
The five most popular stocks sold in 2016 by clients were Apple
(AAPL), Netflix (NFLX), Alibaba (BABA), Bank of America (BAC), and
Chevron (CVX).
Though TD Ameritrade clients ended the year with equity exposure
nearing two-year highs, the spike in volatility at the year's
outset had retail clients reducing their equity exposure in the
first quarter, and the IMX dipped to a low of 4.33 in March. The
IMX then trended upward for the remainder of the year, dipping once
more in July following the Brexit vote. As campaigning around the
U.S. presidential election drew to a close, the IMX reached its
2016 high in October.
“In fact, Brexit was the year's biggest trading event for TD
Ameritrade clients,” added Quirk, thinking back on notable events
throughout the year. “Not only was June 24 the top trading day
of the year overall, it was also the number one day for equity and
options trades for retail clients. The U.S. presidential election
was clients' second biggest trading event overall, and November 8
was the top day for futures trading. Volatility in the January
sell-off of 2016 drove trading on January 20 to be the
third-biggest trading day for our clients.”
Trading volume increased among clients in the fourth quarter of
2016, following U.S. election results and December's highly
anticipated interest rate hike announcement by the Federal
Reserve.
Equities were the most popular securities traded by TD
Ameritrade retail clients, comprising 55 percent of all trades, and
options accounted for 31 percent of trades placed. Futures/forex
trading made up 12 percent of client trades at TD Ameritrade, and
mutual funds and fixed-income trading combined made up two percent
of trades.
As of December 31, 2016, the most widely held stocks by TD
Ameritrade retail clients in 2016 were Apple (AAPL), Facebook (FB),
AT&T (T), General Electric (GE), and Microsoft (MSFT).
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, 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 December 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
2016 U.S. Olympic and Paralympic Teams, as well as an official
sponsor of the National Football League, 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 http://freshaccounts.amtd.com.
Brokerage services provided by TD Ameritrade, Inc., member FINRA
(www.FINRA.org)/SIPC (www.SIPC.org).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170109005140/en/
TD Ameritrade Holding CorporationFor Media:Kim Hillyer,
402-574-6523Communications & Public
Affairskim.hillyer@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor Relations &
Financejeffrey.goeser@tdameritrade.com
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Mar 2024 to Apr 2024
TD Ameritrade (NASDAQ:AMTD)
Historical Stock Chart
From Apr 2023 to Apr 2024