TD Ameritrade Investor Movement Index: IMX Rises for First Time in Five Months

The Investor Movement Index® (IMXSM) ended its five month decline in February, reaching 4.59, which is up 7.2 percent from January’s score of 4.28. 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 February 2019 Investor Movement Index (Graphic: TD Ameritrade)

The IMX reading for the four-week period ending February 22, 2019 follows a particularly low January score, when it reached its lowest reading since 2012. The current index score ranks “Moderately Low” relative to the historic level of exposure investors took to the market.

Overall, TD Ameritrade clients were net buyers during the February period. Clients favored less volatile assets, including fixed income products, while selling equities.

“U.S. equity markets continued rising in February after a round of largely positive earnings reports coupled with more optimistic news headlines,” said JJ Kinahan, chief market strategist at TD Ameritrade. “With earnings season at our backs, it will be interesting to see how economic data, geopolitical events and headline news impacts the momentum we started seeing in February.”

Throughout February, the S&P 500 increased 4.8 percent while the Dow Jones Industrial Average and Nasdaq Composite were both up in excess of 5 percent. The Nasdaq exited a brief bear market during the period, rebounding 20 percent from its December 24 lows. Rising optimism around U.S.-China trade negotiations propelled stocks higher for the second month, while earnings from some technology companies proved better than many investors originally expected. Additionally, the Federal Reserve held its benchmark rate unchanged and announced a hold on further rate increases.

TD Ameritrade clients were net sellers of equities, but did find names to net buy during the period, including:

• Amazon (AMZN)
• Ford Motor Company (F)
• Tesla (TSLA)
• Altria Group (MO)
• CVS Health Corp. (CVS)

Clients at TD Ameritrade net sold a number of popular names throughout the month, including:

• Facebook (FB)
• Alibaba Group (BABA)
• Bank of America (BAC)
• Citigroup (C)
• Procter & Gamble (PG)
• Chipotle Mexican Grill (CMG)

Millennial Buys & Sells
Both populations - millennials and the total client population - were net buyers overall, but millennials were net buyers of equities while the total client population were net sellers of equities. This was the first time in four months millennial activity in equities differed from the total population.

Compared to TD Ameritrade’s total client base, millennials net bought pot stocks like Aurora Cannabis (ACB), Canopy Growth (CGC) and Cronos Group (CRON). They also net bought Apple (AAPL).

Millennials net sold names such as Netflix (NFLX), Advanced Micro Devices (AMD) and Fitbit (FIT). Under Armour (UAA) also made the list for the second consecutive month in a row.

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 February 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 Corporation
TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 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 900,000 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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