TD Ameritrade Investor Movement Index: IMX score slips in December
OMAHA, Neb.–(BUSINESS WIRE)–The Index of Investor Movements® (IMXSM) fell to 7.97 in December from 8.82 in November. The IMX is TD Ameritrade‘s proprietary behavioral-based index, aggregating Main Street investor positions and activity to measure what investors were actually doing and how they were positioning themselves in the markets.
The reading for the five-week period ending December 31, 2021 ranks “high” compared to historical averages.
According to JJ Kinahan, Chief Market Strategist, TD Ameritrade, “At the end of a year characterized by fluctuating uncertainty and numerous market record highs, we saw clients temper their risk appetite in December, finally indulging in strong selling by the last week of December. . Whether due to moderating risk or tax games, our customer base was a bit more cautious heading into 2022.”
Equity markets began the period with uncertainty about the impact rising Covid-19 cases could have on the trajectory of global economic recovery, and those worries were amplified as the Omicron variant swept the world. Inflation worries also continued to grow as the consumer price index posted an annual increase of 6.8% – a pace not seen since the 1980s. more speculative market, attracting the attention of many market participants. Central bank policy also came under scrutiny as the European Central Bank (ECB) joined the Federal Reserve Bank (FRB) in tackling rising inflation with tighter monetary policy in 2022. The mix of adjustments to asset purchases and rate hikes continues to be the main source of uncertainty surrounding central bank policy. With uncertainty mounting and the S&P 500 sitting on a record year of performance with all sectors up double-digit percentage returns, the period ends with a net sell-off in stocks.
Although there was strong selling across most S&P 500 sectors, TD Ameritrade clients found opportunities to buy some names during the month. Some of the popular stock names bought in December were:
Rivian Automotive (RIVN)
Tesla Inc. (TSLA)
Ford Motor Company (F)
Paypal Holdings Inc. (PYPL)
Walt Disney Company (DIS)
On the sell side, TD Ameritrade clients used the high prices of some names as profit-taking opportunities. Names sold during the period included:
Micron Technology, Inc. (MU)
Taiwan Semiconductor Manufacturing (TSM)
Moderna Inc. (ARNM)
Cisco Systems Inc. (CSCO)
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 December 2021 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 investment success.
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 trading volume or financial performance of clients for TD Ameritrade.
About TD Ameritrade
TD Ameritrade provides investment and education services to self-directed investors and registered investment advisers. A leader in retail in the United States, we leverage the latest cutting-edge technology and personalized customer service to help our customers stay on top of market trends. Learn more by visiting www.amtd.com.
Brokerage services provided by TD Ameritrade, Inc., Member FINRA (www.FINRA.org) / SIPC (www.SIPC.org), a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2022 Charles Schwab & Co. Inc. All rights reserved.
Source: TD Ameritrade, Inc.