As market indices reached new highs, retail
investors saw buying opportunities in May
In May, the Investor Movement Index® rose for the first time in
five months, increasing to 5.06, TD Ameritrade, Inc.1 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
actually were doing and how they were positioned in the
markets.
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TD Ameritrade May 2018 Investor Movement
Index (Graphic: TD Ameritrade)
May IMX
The May 2018 Investor Movement Index for the four weeks ending
May 25, 2018 reveals:
- Reading: 5.06 (compared to 4.79 in
April)
- Trend direction: Positive
- Trend length: 1 month
- Score relative to historic ranges:
Moderately Low
As market volatility settled in May, TD Ameritrade clients
dialed-up their overall equity exposure. Net buying activity,
including buying in equities with higher relative volatility,
pushed the IMX slightly higher for the second time this year.
“For the first time this year we saw clients taking on more
exposure to the market, with millennials increasing their exposure
at a faster rate than the rest of our client base,” said JJ
Kinahan, chief market strategist at TD Ameritrade. “As market
levels stablilized following an early May rally, clients were
mostly net buyers the last two weeks of the month.”
TD Ameritrade clients were net buyers during the May IMX period.
Top buys include:
- AT&T Inc. (T), after reaching a
52-week low during the period.
- Sprint Corporation (S), following news
of a proposed merger with T-Mobile US, Inc. (TMUS).
- Snap Inc. (SNAP), which traded lower
after an earnings miss and analyst downgrade.
- General Electric Company (GE), after
announcing it would merge its transportation unit with Westinghouse
Air Brake Technologies Corporation (WAB).
- The Walt Disney Company (DIS), which
experienced volatility after Comcast Corporation (CMCSA) announced
it is considering and preparing an offer for certain assets of
Twenty-First Century Fox, Inc.(FOXA) that Walt Disney has agreed to
buy.
- iQIYI Inc. (IQ), as the Chinese video
game streaming company announced its first offline on-demand movie
theatre.
Despite being net buyers, TD Ameritrade clients found equities
to sell during the period, including:
- Apple Inc. (AAPL), which reached an
all-time high after the company announced a $100 billion share
buyback.
- Facebook, Inc. (FB), which increased
after reaching yearly lows in March.
- Valeant Pharmaceuticals International,
Inc. (VRX), following better-than-expected earnings.
- Frontier Communications Corporation
(FTR), which was net sold for a second month after the stock traded
higher early in the period.
- Macy’s Inc. (M), which reached a
52-week high after reporting better-than-expected sales to
international tourists.
Major market indices moved higher at the start of the May period
in part due to a strong earnings season. While a stronger U.S.
dollar and geopolitical fears pushed the Russell 2000 (RUT) index
to its highest level ever, the Cboe Volatility Index (VIX) traded
in the low teens. The yield on the 10-year Treasury note also
reached multiyear highs, and oil prices rose above $70 per barrel
for the first time since 2014. However, the Dow closed lower at the
end of May following newly imposed U.S. tariffs, which sparked
geopolitical tensions and fears of political uncertainty.
“The Fed is expected to raise rates at its June meeting, and
investors will want to hear what they have to say about
expectations for future rate hikes,” said Kinahan.
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 more than 11 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 January 2010; to view the full
report from May 2018; 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 Corporation
TD Ameritrade provides investing services and education to more
than 11 million client accounts totaling $1.2 trillion in assets,
and custodial services to more than 6,000 registered investment
advisors. We are a leader in U.S. retail trading, executing an
average of more than 940,000 trades per day for our clients, nearly
a quarter of which come from mobile devices. We have a proud
history of innovation, dating back to our start in 1975, and today
our team of 10,000-strong is committed to carrying it forward.
Together, we are leveraging the latest in cutting edge technologies
and one-on-one client care to transform lives, and investing, for
the better. Learn more by visiting TD Ameritrade’s newsroom at
www.amtd.com, or read our stories at Fresh Accounts.
1TD Ameritrade, Inc. is a broker-dealer subsidiary of TD
Ameritrade Holding Corporation. Brokerage services provided by
TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC
(www.SIPC.org).
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version on businesswire.com: https://www.businesswire.com/news/home/20180604005472/en/
TD Ameritrade Holding CorporationFor Media:Becky Niiya,
402-574-6652Corporate
Communicationsbecky.niiya@tdameritrade.com@TDAmeritradePRFor
Investors:Jeff Goeser, 402-597-8464Investor
Relationsjeffrey.goeser@tdameritrade.com
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