TD Ameritrade Investor Movements Index: IMX Rises Slightly in August
OMAHA, Neb .– (COMMERCIAL THREAD) – The investor movement index® (IMXSM) rose to 8.38 in August, down from 8.34 in July. 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 five-week period ending August 27, 2021 ranks “High” compared to historical averages.
“We saw all of the major indexes reach new highs as the markets enjoyed their seventh consecutive month of victory, which created a pretty positive environment,” said JJ Kinahan, chief market strategist, TD Ameritrade. “With economic data, the Delta variant, changing geopolitics and inflation fears sending mixed messages, investors should remain vigilant as September approaches, which has a reputation as one of the most volatile months of the year. ”
Stock markets rose during the August period. All three major stock indexes set new all-time highs, with the S&P 500 posting seven consecutive months of gains, hitting record highs, and the Dow Jones Industrial Average hitting 35,000 for the first time in its history. The Nasdaq 100 had its best month, up 4.16%. The Dow Jones Industrial Average rose 1.21%, while the S&P 500 rose 2.6%. Markets were quick to outgrow a mid-month pullback as the Federal Reserve minutes from the July FOMC meeting pointed to a reduction in asset purchases in the coming months. This is likely due to weaker than expected economic data for many indicators, potentially giving the FOMC an opportunity to halt monetary policy tightening at its September meeting.
TD Ameritrade clients were net buyers of commodities overall during the August IMX period, but were net sellers of stocks as well as net buyers of assets considered less risky, including income securities. fixed. Some of the popular equity securities purchased during the period were:
Apple Inc. (AAPL)
Ford Motor Co. (F)
Nvidia Corp. (NVDA)
Microsoft Corp (MSFT)
SoFi Technologies Inc. (SOFI)
General Motors (GM)
TD Ameritrade clients took advantage of rising prices to sell some stocks during the period, including:
Tesla Inc. (TSLA)
Netflix Inc. (NFLX)
Advanced Micro Devices Inc. (AMD)
Chewy inc. (CHWY)
Bank of America Inc. (BAC)
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 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 consult the full report for August 2021; 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.
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Source: TD Ameritrade, Inc.