TD Ameritrade Investor Movement Index: IMX score increases in November
OMAHA, Neb .– (COMMERCIAL THREAD) – The investor movement index® (IMXSM) rose to 8.82 in November from 8.22 in October. 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 November 26, 2021 ranks “High” compared to historical averages.
“In November, we saw clients increase their overall exposure and return to higher beta names,” said JJ Kinahan, chief market strategist, TD Ameritrade. “In a volatile month as the S&P 500 and Nasdaq 100 hit new all-time highs, retail traders embraced buying in the information technology, communications services and consumer sectors. discretionary and seized profit-taking opportunities with some of the biggest names in retail.
Equity markets started the period on a bullish streak, with the Purchasing Managers’ Index (PMI) and non-farm payroll reports beating expectations. However, in the weeks that followed, concerns began to mount as economic data on inflation in the United States was higher than expected. Markets moved sideways throughout the month even as the benchmark 10-year Treasury rate rose, hitting just below the 1.7% level. The dispersion across sectors of the S&P 500 was wide, with technology advancing more than 5% while communications ended down almost 5%. As markets appeared poised to end the month higher, continuing the positive gains established in October, the emergence of a new variant of Covid-19 as well as clues from Federal Reserve Chairman Powell that the pace of the Tightening policy could be accelerated caused the markets to fall as the period drew to a close.
TD Ameritrade clients were net buyers overall during the November IMX period, although market volatility was high throughout the month. TD Ameritrade clients initially sold stocks at the start of the period, but resumed buying as the month progressed. Some of the popular equity securities purchased during the period were:
Rivian Automobile (RIVN)
PayPal Fund (PYPL)
Walt Disney Company (DIS)
NVIDIA Corporation (NVDA)
Names sold during the period included:
Amazon Inc. (AMZN)
Walmart Inc. (WMT)
Nio inc. (NIO)
Semiconductor Manufacturing in Taiwan (TSM)
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 past 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 going back to January 2010; To view the full November 2021 report or to sign up for 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.
About TD Ameritrade
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Source: TD Ameritrade, Inc.