Retail investors were net buyers in June and overall for the first half of the yearNew research from TD Ameritrade’s Investor Movement Index, a behavior-based measurement of Main Street investor activity. Visit here.
July 10, 2017 — OMAHA, Neb.–(BUSINESS WIRE)–The June 2017 Investor Movement Index® reached an all-time high of 6.58 as retail investors steadily increased their equity exposure throughout the first six months of 2017, TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (Nasdaq: AMTD) announced today.
The Investor Movement Index, or the IMXSM, 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.
The June 2017 Investor Movement Index for the four weeks ending June 30, 2017, reveals:
- Reading: 6.58 (compared to 6.13 in May)
- Trend direction: Positive
- Trend length: 2 month
- Score relative to historic ranges: High
The IMX spiked seven percent in June, reaching a new high of 6.58, as TD Ameritrade clients increased exposure to equity markets for the second month in a row. Net buying of equities, coupled with higher relative volatility in widely held names, including Apple (AAPL) and Facebook (FB), caused client accounts to show increased equity exposure.
Year-to-date, indices have posted healthy increases – S&P 500 and Dow Jones Industrial Average up over eight percent, and Nasdaq Composite increasing over 14 percent. Economic data has also strengthened around the globe so far this year, and the Federal Reserve remains confident about the path of the U.S. economy, increasing its target rate by a quarter percent.
“With five consecutive months of net buying, we see retail investors continuing to participate in the market as it hovers just below all-time highs,” said Steven Quirk, executive vice president of trading at TD Ameritrade. “As the 10-year yield remains lower than earlier estimates, dividend stocks including Ford, AT&T and Verizon have remained client favorites.”
Tech Stocks Center Stage
For the second consecutive month, TD Ameritrade clients showed strong interest in Technology stocks. Apple (AAPL), which experienced volatility during the month and ended the period down, was a net buy. Facebook (FB) reached a 52-week high during June and was net bought. Amazon (AMZN), which broke through the $1,000 mark during the period, was also a net buy. Tesla Inc. (TSLA) hit another all-time high during the period and was another net buy.
Dividend payers Ford (F), AT&T Inc. (T) and Verizon (VZ) were also in favor among TD Ameritrade clients, all being net buys. Advanced Micro Devices Inc. (AMD), which saw substantial volatility along with an analyst upgrade during the period, was a net buy. Shopify Inc. (SHOP) was also a net buy after reaching a new high. Additional popular names bought include Microsoft Inc. (MSFT) and Berkshire Hathaway Inc. (BRK.B).
TD Ameritrade clients were net sellers of banks Citigroup Inc. (C) and Bank of America (BAC) during the period. Both stocks were up during the June period as all major banks passed the qualitative portion of the Fed’s stress test and were cleared to pay increased dividends. Arconic Inc. (ARNC) was a net sell once again following volatility with the stock down over 15 percent during the period. American Airlines Inc. (AAL) was a net sell after the company reached a 52-week high following record year-to-date traffic volume. Bristol-Meyers Squibb (BMY), which traded up during the month after the U.S. Senate released its legislation to repeal and replace the Affordable Care Act, was also net sold. Newill Brands Inc. (NWL), which reaffirmed its guidance and reached a year-to-date high, was a net sell. Additional names sold include Yahoo, Inc. (YHOO) and Mobileye (MBLY).
2017 Mid-Year Review
TD Ameritrade clients were net buyers overall in the first half of 2017, increasing their equity positions during the year. The most popular buys of these investors so far this year were Nvidia (NVDA), followed by Amazon (AMZN). Verizon (VZ), AT&T (T), and Ford (F) rounded out the ranks of the top five stocks bought.
The five most popular stocks sold to date in 2017 by clients were Apple (AAPL), Facebook (FB), Disney (DIS), Wynn Resorts (WYNN) and Citigroup (C).
TD Ameritrade clients ended the first half of the year with equity exposure at all-time highs. Following a decrease in equity exposure in December of 2016, clients began adding to exposure in 2017 as markets pushed to new all-time highs. The IMX saw a slight pullback in April 2017 following lower relative volatility in widely held names compared to the overall market. The IMX then pushed higher on the back of broad market increases, and ended the June period at a score of 6.58.
The biggest trading day and the biggest day for equity trades in the first half of 2017 was May 17, on which the S&P was down 1.8 percent and the Nasdaq was down over 2.5 percent. The second biggest day for client trading and the largest day for option trades was June 9, on which the Nasdaq fell almost 2 percent after hitting a high intraday.
As of June 30, 2017, the most widely held stocks by TD Ameritrade retail clients were Apple (AAPL), Facebook (FB), Amazon (AMZN), General Electric (GE) and AT&T (T).
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.
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About TD Ameritrade Holding Corporation
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