TD Ameritrade Investor Movement Index: IMX score hits highest ever in June
OMAHA, Neb .– (COMMERCIAL THREAD)–The Investor movement index® (IMXSM) increased from 0.76 to 9.08 in June, compared to 8.32 in May. The IMX is TD Ameritrade’s proprietary behavioral index, which aggregates the positions and activity of Main Street investors to measure what investors actually did and how they positioned in the markets.
The reading for the four week period ending June 25, 2021 ranks “High” compared to historical averages.
“The S&P 500 and the Nasdaq hit record highs amid generally positive economic data and inflation fears, which pushed our investor movement index to a new high in June,” said said JJ Kinahan, Chief Markets Strategist, TD Ameritrade. “We’re heading into what is typically a summer lull, with relatively low trading volumes and low volatility, but corporate earnings are on the horizon in July. Advice from the big names, starting with finance, will be a focal point, and depending on what is said, the markets as a whole are likely to evolve based on their outlook for the rest of the year. ”
Equity markets were mixed over the period. The Dow Jones Industrial Average fell 0.3% during the period. The S&P 500 and the Nasdaq Composite both rose, hitting all-time highs in the process. The S&P 500 rose 1.8% and the Nasdaq 4.5%. Economic news was generally positive, although retail sales fell 1.3% as consumer spending shifted from goods to services. President Biden and a group of senators announced a $ 1,000 billion bipartisan infrastructure deal to overhaul transportation, water and broadband capabilities. Federal Reserve officials have signaled an earlier-than-expected interest rate hike as the economy recovers from the pandemic and inflation warms, while investors generally continue to believe recent inflation will be transient.
TD Ameritrade clients were net buyers overall during the June IMX period. Some of the popular equity securities purchased during the period were:
Airbnb Inc. (ABNB)
Alibaba Group Holding Ltd. (BABA)
Coinbase Global Inc. (COIN)
Ford Motor Co. (F)
Nvidia Corp. (NVDA)
TD Ameritrade clients took advantage of rising prices to sell certain stocks during the period, including:
Eli Lilly et Cie (LLY)
Moderna Inc. (ARNM)
Peloton Interactive Inc. (PTON)
Twitter Inc. (TWTR)
Zoom Video Communications Inc. (ZM)
The IMX value is calculated based on a complex proprietary formula. Each month, TD Ameritrade draws a sample of its funded account customer base, which includes all accounts that have completed a trade in the previous month. The holdings and positions of this statistically significant sample are evaluated to calculate individual scores, and the median of these 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 for June 2021; or to subscribe to future IMX news alerts, please visit www.tdameritrade.com/IMX. Additionally, TD Ameritrade clients can trace the IMX using the symbol $ IMX in the thinkorswim® or thinkorswim mobile platforms.
The inclusion of specific security names in this commentary does not constitute a recommendation by TD Ameritrade to buy, sell or hold. All investments involve risk, including the possible loss of capital. Please consider all the risks and objectives before investing.
Past performance of a security, strategy or index is no guarantee of future results or the success of investments.
Historical data should not be used alone when making investment decisions. Please consult other sources of information and consider your financial situation and personal goals before making an independent investment decision.
The IMX is not a tradable index. IMX should not be used as an indicator or predictor of future client trading volume or the financial performance of TD Ameritrade.
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Source: TD Ameritrade, Inc.