OMAHA, Neb .– (COMMERCIAL THREAD) – The investor movement index® (IMXSM) rose to 8.66 in September, down from 8.38 in August. 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 September 24, 2021 ranks “High” compared to historical averages.
“After recently setting records across all indices, we saw a market decline in September at the end of the month,” said JJ Kinahan, chief market strategist, TD Ameritrade. “Although market volatility has been high from recent levels, TD Ameritrade clients have used this volatility to help them make their investment decisions. As we hit new highs in early September, clients saw this as an opportunity to sell stocks and the ensuing pullback as a buying opportunity. ”
Stock markets were very volatile during the September period, due to global economic concerns and persistent supply chain issues. Investor worries had slowly built up until September and eventually led to strong sells in all three major indices. All major sectors fell in the month except the energy sector, which benefited from higher crude oil prices amid supply concerns. After initially selling, the S&P 500 attempted to rally to narrow another gap. That drop ended a seven-month streak of positive gains, leaving the potential to end positive for Q3.
TD Ameritrade clients were net buyers of products overall during the September IMX period, increasing their holdings of stocks and fixed income assets. Some of the popular equity securities purchased during the period were:
Apple Inc. (AAPL)
Alibaba Group Holding Ltd. (BABA)
Ford Motor Co. (F)
Nvidia Corp. (NVDA)
SoFi Technologies Inc. (SOFI)
TD Ameritrade clients took advantage of rising prices to sell some stocks during the period, including:
Tesla Inc. (TSLA)
Netflix Inc. (NFLX)
Amazon.com, Inc. (AMZN)
American Airlines Group Inc. (AAL)
Delta Air Lines, Inc. (DAL)
Bank of America Corporation (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 view the full September 2021 report or to sign up for future IMX news alerts, please visit www.tdameritrade.com/IMX. Additionally, TD Ameritrade clients can plot 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.