TD Ameritrade's Investor Movement Index: Clients Were Net Sellers of Equities in July
August 08 2016 - 12:30PM
Business Wire
Net selling coupled with lower volatility of
several widely held names drops score
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 July 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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View the full release here:
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TD Ameritrade's IMX vs. S&P 500
(Graphic: TD Ameritrade)
The July 2016 Investor Movement Index for the four weeks ending
July 29, 2016, reveals:
- Reading: 4.69 (compared to 5.00 in
June)
- Trend direction: Negative
- Trend length: 1 Month
- Score relative to historic ranges:
Middle
TD Ameritrade clients were net sellers of equities in July as
the IMX decreased to 4.69.
The July IMX period saw a decline in exposure to the equity
markets in TD Ameritrade client accounts. Net selling of equities
was a driver of the reduction in exposure, but lower volatility
relative to the overall market of several widely held names like
Apple Inc. (AAPL), Facebook Inc. (FB), and Bank of America Corp.
(BAC) also contributed to the decline. The lower relative
volatility of these names came in a month where the VIX, which
measures volatility of the S&P 500, reached its lowest point
year-to-date.
“July was no exception to a typical pattern we observe when
markets advance to new highs,” said Nicole Sherrod, managing
director of trading, TD Ameritrade. “Retail investors tend to take
profits in stocks that have had significant moves to the upside and
rotate into stocks that they find to be undervalued.”
The major market indices saw gains during the July IMX period,
with the Russell 2000 and NASDAQ Composite posting advances greater
than 8% and 9%, respectively. The S&P 500 and Dow Jones
Industrial Average were both up around 6% after posting new
all-time highs during the month and remaining range-bound near
those highs to end the period. The market gains came against the
backdrop of an earnings season where more than half of the S&P
500 companies who had reported by the end of July registered
earnings above estimates. The Federal Reserve Board met in July as
well, and although the meeting resulted in no change to its key
rate, its official statement included a note that “Near-term risks
to the economic outlook have diminished,” which some analysts took
as indication of less concern about global economic conditions than
has been stated in previous months.
Despite being net sellers of equities overall, there were some
popular names that were net buys by TD Ameritrade clients in July.
Amazon.com Inc. (AMZN) and Facebook Inc. (FB) were net buys ahead
of their earnings announcements. Both beat analysts’ expectations
and rose to new all-time highs late in the month. Dividend-paying
companies were popular buys with financial sector issuers Wells
Fargo Corp. (WFC), Barclays PLC (BCS), and Bank of America Corp.
(BAC), ending the period as net buys. Yield outside of the
financial sector seemed to garner interest as well, as Ford Motor
Co. (F) saw net buying too.
The sharp recovery and climb to new highs in the U.S. equity
markets following the Brexit vote seemed to trigger some selling
activity. Alibaba Group Holding Ltd. (BABA) was net sold, as was
Intel Corp. (INTC). Both companies saw declines during the
volatility earlier in the year but traded up to or very near their
pre-volatility levels in July. Popular retailer Costco Wholesale
Corp. (COST), which saw gains in July and traded near its all-time
high, was net sold. Sirius XM Holdings Inc. (SIRI) rose to a new
all-time high in July and was net sold as well. General Electric
Co. (GE) rose to its highest point since 2008 and was also net
sold.
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 June 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/20160808005660/en/
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
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