TD Ameritrade Investor Movement Index: IMX score reaches lowest level in a year in January
OMAHA, Neb.–(BUSINESS WIRE)–The Index of Investor Movements® (IMXSM) fell to 7.07 in January from 7.97 in December. The IMX is TD Ameritrade’s proprietary behavioral-based index, aggregating the positions and activity of Main Street investors to measure what investors were actually doing and how they were positioning themselves in the markets.
The reading for the five-week period ending January 28, 2022 ranks “moderately high” compared to historical averages.
“Volatility defined the month of January, and our clients continued the trend of reducing market exposure as we face many uncertainties including interest rate hikes, inflation and geopolitical risks. “, according to JJ Kinahan, chief market strategist, TD Ameritrade. “As you would expect in times of uncertainty, we’ve seen many clients gravitate towards Treasuries, until they get a clearer picture of equities.”
January began with opportunistic buying, as indicated by buyer interest in equities, although this led to less demand and ultimately lower buying levels in the second half of the month. . The month ended with a few strong sessions, but still ended as the worst month for the market since March 2020 and the worst start to the year since the global financial crisis. Volatility intensified as the Fed signaled it could start raising rates in March, and global central banks are also expected to start or continue to tighten monetary policies, the Bank of England and the European Central Bank to meet in early February. Trading in January saw selling in some areas of the market with increased price inflation, particularly unprofitable tech companies, and a general increase in volatility as markets braced for sustained volatility.
TD Ameritrade clients were net buyers of stocks in January. Some of the popular stock names bought in January were:
NVIDIA Corporation (NVDA)
Microsoft Corporation (MSFT)
Rivian Automotive (RIVN)
Block Inc. (SQ)
Walt Disney Company (DIS)
While the market started the month with a strong downtrend, some companies did not sell immediately and clients took advantage of this strength to exit some positions. Names sold during the period included:
Carnival Corporation (CCL)
Exxon Mobil Corporation (XOM)
Walmart Inc. (WMT)
Visa Inc. (V)
Zoom Video Communications Inc. (ZM)
The IMX value is calculated based on a complex proprietary formula. Each month, TD Ameritrade pulls a sample of its funded account customer base, which includes all accounts that have transacted in the previous month. The holdings and positions of this statistically significant sample are evaluated to calculate the individual scores, and the median of these scores represents the monthly IMX.
For more information on the Investor Movement Index, including historical IMX data dating back to January 2010; to view the full January 2022 report or to sign up for future IMX news alerts, please visit www.tdameritrade.com/IMX. Additionally, TD Ameritrade clients can plot 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 buy, sell or hold recommendation by TD Ameritrade. All investments involve risk, including possible loss of principal. Please consider all risks and objectives before investing.
Past performance of a security, strategy or index does not guarantee future results or the success of an investment.
Historical data should not be used alone when making investment decisions. Please consult other sources of information and consider your financial situation and objectives 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.
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Source: TD Ameritrade, Inc.