TD Ameritrade Investor Movement Index: IMX Dips amid Market Highs

Business Wire 6-May-2019 12:30 PM

Retail investors found buying opportunities in April, but were largely risk averse while trading equities

The Investor Movement Index^® (IMX^SM) reached 4.61 in April, down slightly from its March score of 4.65. The IMX is TD Ameritrade's proprietary, behavior-based index, aggregating 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 April 2019 Investor Movement Index (Graphic: TD Ameritrade)

The IMX reading for the four-week period ending April 26, 2019 ranks "Moderately Low" relative to the historic level of exposure investors took to the market. TD Ameritrade clients were net buyers, but favored less risky assets, such as fixed income products, over equities.

"Stocks have been climbing since the beginning of the year into April and earnings season was off to a fairly positive start," said JJ Kinahan, chief market strategist at TD Ameritrade. "Yet volatility receded and clients continued to slightly decrease exposure as markets climbed upward and hit new highs."

During April, the S&P 500 increased by 3.7 percent, while the Nasdaq Composite Index was up 5.4 percent, each ending the period at all-time closing highs. Markets moved higher after better-than-expected GDP growth was reported in the first quarter, with the economy expanding at 3.2 percent. Job gains bounced back during the period, with U.S. payrolls growing by 196,00 and the unemployment rate remained near historic lows at 3.8 percent. Earnings season also kicked off, with many companies reporting better-than-expected earnings. Still, the S&P 500 is on pace for the first year-over-year decline in earnings since 2016.

Retail investors at TD Ameritrade found popular names to buy during the April IMX period, including:

• Lyft Inc. (LYFT)
• CVS Health Corp. (CVS)
• Walt Disney Co. (DIS)
• Tesla Inc. (TSLA)
• NIO Inc. (NIO)

TD Ameritrade clients also sold a number of popular names, including:

• Facebook Inc. (FB)
• Amazon Inc. (AMZN)
• Bank of America Corp. (BAC)
• Twitter Inc. (TWTR)
• Alibaba Group (BABA)

Millennial Buys & SellsFor the first time since TD Ameritrade began tracking millennial IMX data in January 2018, there were no differences between the popular net buys among millennials and the total client base.

When it came to net sold equities, millennials contrasted from the broader client base by net selling popular names like JD.com (JD), Chipotle Mexican Grill Inc. (CMG) and Under Armour Inc. (UAA).

About the IMXThe 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 March 2019; 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.

About TD Ameritrade Holding CorporationTD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.3 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 850,000 trades per day for our clients, more than 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.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org)

Source: TD Ameritrade Holding Corporation

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