TD Ameritrade Investor Movement Index: IMX Declines Slightly in September Amid Bullish Activity

The September 2017 Investor Movement Index^® marked a decline for the first time in five months, dropping to 7.14, as TD Ameritrade clients drew down exposure to equity markets, TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (Nasdaq: AMTD), announced today. The Investor Movement Index, or the IMX^SM, is a proprietary, behavior-based index created by TD Ameritrade that aggregates Main Street investor positions and activity to measure what investors are actually doing and how they are positioned in the markets.

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TD Ameritrade September 2017 Investor Movement Index (Graphic: TD Ameritrade)

The September 2017 Investor Movement Index for the four weeks ending September 29, 2017, reveals:

• Reading: 7.14 (compared to 7.45 in August)
• Trend direction: Negative
• Trend length: 1 month
• Score relative to historic ranges: High

The IMX reading for September indicates a slight decline following an all-time high reached in August. TD Ameritrade clients maintained an overall bullish trend for the eighth month, despite reducing equity exposure. The IMX was impacted by decreased relative volatility in widely held positions, including Apple Inc. (AAPL) and Facebook Inc. (FB), and lower exposure within client accounts. Positive market moves potentially motivated investors to stay engaged, amidst multiple natural disasters impacting the U.S. and rising geopolitical concerns. Market indices ended September at all-time highs– S&P 500 and Nasdaq Composite posted gains in excess of 3 percent- with an average intraday move of 40 basis points on the S&P 500.

“Despite being net buyers of stocks in the month of September, our clients slightly reduced their overall exposure to the market heading into the last quarter of the year,” said JJ Kinahan, chief market strategist at TD Ameritrade.

TD Ameritrade clients seemed to recognize a buying opportunity within the technology sector following the launch of three new iPhone models by Apple Inc. (AAPL) during the September period. Clients were also buyers of Chinese stocks including Alibaba Group Holding Ltd. (BABA), Tencent Holdings Ltd. (TCEHY) and JD.com Inc. (JD), following an announcement that each company would further invest in the international, digital payment space. AT&T Inc. (T), which saw a large pullback early in the month, then subsequent recovery, was also net bought. Home Depot Inc. (HD) was a net buy following a third-party analyst upgrade, projecting an increase in revenue as rebuilding efforts begin after Hurricanes Harvey and Irma hit part of the U.S. Additional popular names bought include Amazon Inc.(AMZN) and Advanced Micro Devices Inc. (AMD).

TD Ameritrade clients seemingly used price increases among certain names as a selling opportunity during the September period. Drug manufacturers Bristol-Myers Squibb (BMY) and Pfizer Inc. (PFE) were net sold in September. Both reached a 52-week high, with analysts upgrading Pfizer and Bristol-Myers Squibb receiving approval from the FDA for Opdivo, a liver cancer drug. Gilead Sciences Inc. (GILD), which also reached a 52-week high, was net sold following its buyout of Kite Pharma. Citigroup Inc. (C) reached yearly highs after the Federal Reserve announced it would begin normalizing its balance sheet, and was a net sell. Following the Organization of the Petroleum Exporting Countries (OPEC) announcing firmer compliance to its production cuts, ConocoPhillips Corp. (COP) and Chevron Corp. (CVX) traded higher and were net sold. Additional names sold include Twitter Inc. (TWTR) and Ford Motor Co. (F).

About the IMX

The IMX value is calculated based on a complex proprietary formula. Each month, TD Ameritrade pulls a sample from its client base of 7 million funded accounts, which includes all accounts that 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 those scores represents the monthly IMX.

For more information on the Investor Movement Index, including historical IMX data going back to December 2010; to view the full report from May 2017; or to sign up for future IMX news alerts, please visit www.tdameritrade.com/IMX. Additionally, TD Ameritrade clients can chart the IMX using the symbol $IMX in either the thinkorswim^® or TD Ameritrade Mobile Trader platforms.

Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.

Past performance of a security, strategy, or index is no guarantee of 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 individual financial position and goals 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.

For the latest TD Ameritrade news and information, follow the company on Twitter, @TDAmeritradePR.

Source: TD Ameritrade Holding Corporation

About TD Ameritrade Holding Corporation

Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 40 years. TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade’s newsroom or www.amtd.com for more information, or read our stories at Fresh Accounts.

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