IMX starts 2018 with the largest
month-over-month pullback in three years
The January 2018 Investor Movement Index® broke its upward
momentum by dropping more than nine percent to 7.79, TD Ameritrade,
Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade
Holding Corporation (Nasdaq: AMTD) announced today. 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 January 2018 Investor
Movement Index (Graphic: TD Ameritrade)
January IMX
The January 2018 Investor Movement Index for the four weeks
ending January 26, 2018, reveals:
- Reading: 7.79 (compared to 8.59 in
December)
- Trend direction: Negative
- Trend length: 1 month
- Score relative to historic ranges:
High
With the largest month-over-month decrease in three years,
January’s IMX dropped 9.3 percent, down from the prior month’s
record high. TD Ameritrade clients were net buyers overall as the
market continued to rally in January, with the S&P 500 and Dow
Jones Industrial Average both reaching new milestones. Despite net
buying activity, exposure to equity markets within client accounts
declined during the period. The reduced exposure was driven by
lower relative volatility among widely held names, including
General Electric Inc. (GE), Apple (AAPL) and Amazon Inc.
(AMZN).
Despite a decline in January’s IMX, market indices continued to
soar. The Dow Jones Industrial Average reached its next 1,000 point
mark in record-setting time, the Nasdaq Composite closed at an
inflation-adjusted record during the month, and the S&P 500
increased over 300 percent since the bull market began in March
2009.
“At the start of 2018, clients may have realized some profits in
stocks that had stronger moves relative to the overall market,”
said JJ Kinahan, chief market strategist at TD Ameritrade. “As they
began to look for opportunities elsewhere, we saw clients start to
rotate into stocks with lower exposure to moves in the overall
market.”
Net buying activity favored the Technology and Industrial
sectors, as Facebook Inc. (FB), Amazon Inc. (AMZN) and General
Electric Inc. (GE) were net buys during the period. Facebook Inc.
(FB) and Amazon Inc. (AMZN) reached all-time highs in January,
while General Electric Inc. (GE) increased early on in the period
then sold off after the company missed earnings estimates. Boeing
Co. (BA) – up nearly 100 percent over the last year following
strong demand in the Asia-Pacific market – reached all-time highs
and was net bought. Caterpillar Inc. (CAT) was net bought as
well.
Additional popular names bought include Bank of America Corp.
(BAC), Microsoft Corp. (MSFT), and Berkshire Hathaway Inc.
(BRK.B).
Following market gains, TD Ameritrade clients appeared to take
profits in some names during the period. Healthcare players Gilead
Sciences Inc. (GILD) and Teva Pharmaceuticals (TEVA) were net sold.
Gilead Sciences Inc. (GILD) received multiple analyst upgrades and
traded near 52-week highs during the period, while Teva
Pharmaceuticals (TEVA) traded at levels not seen since last summer
after its cost-cutting plan resulted in an analyst upgrade. Energy
stock, Conoco Phillips (COP), was net sold as crude oil traded near
a 3-year high and U.S. rig counts reached the highest point since
September. Finally, Arconic Inc. (ARNC) traded at an 11-month high
following freezes to its pension plan, and was net sold.
Additional names sold include Macy’s Inc. (M), Qualcomm Inc.
(QCOM), Sirius XM Holdings Inc. (SIRI), and Chipotle Mexican Grill
(CMG).
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 7 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 May 2017; 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. 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/20180205005641/en/
TD Ameritrade Holding CorporationFor Media:Christina Goethe,
201-369-8510Communications & Public
Affairschristina.goethe@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Investor
Relationsjeffrey.goeser@tdameritrade.com
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