October Investor Movement Index Spikes in October

Behavior-based index measures Main Street investor positions

November 05, 2013 – OMAHA, Neb.–(BUSINESS WIRE)–TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE: AMTD), is today revealing the Investor Movement IndexSM reading for October 2013. The Investor Movement Index, or the IMX, 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 October 2013 Investor Movement Index for the four weeks ending October 25, 2013, reveals:

  • Reading: 5.07 (compared to 4.97 in September)
  • Trend direction: Positive
  • Trend length: 1 month
  • Score relative to historic ranges: Moderately high

October’s IMX reading registered higher as clients increased equity market exposure in October as equity markets rallied to new record levels. This higher reading follows a dip in September when clients seemed to have anticipated a market pullback and accordingly reduced their exposure. In early October the S&P 500 continued to fall, and eventually reached a level four percent below the September high, before bouncing back to new record levels by the end of the month. Clients were net buyers of equities overall and net buying activity seemed to favor the technology and services sectors.

“TD Ameritrade clients continued to add to their positions in Facebook (FB) as the stock moved off of an all-time high earlier in October,” said Nicole Sherrod, managing director of TD Ameritrade’s Trader Group. “Yet again it appears our clients expected market moves and repositioned their equity market exposure accordingly.”

Yet again it appears our clients expected market moves and repositioned their equity market exposure accordingly

The IMX value is calculated based on a complex proprietary formula. Each month, TD Ameritrade pulls a sample from its client base of 6 million funded accounts that includes all accounts that completed a trade in the past two months. 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 October 2013, 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.

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.

About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE: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 37 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, 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.