TD Ameritrade Investor Movement Index: January IMX Falls to Six-Year Low

Despite a rebound in U.S. equity markets, investors largely remained risk-averse in January. The Investor Movement Index® (IMXSM) continued its downward trend for the fourth consecutive month to 4.28, down 3 percent from last month’s reading of 4.41. The IMX is TD Ameritrade’s proprietary, behavior-based index, aggregating Main Street investor positions and activity to measure what investors actually were doing and how they were positioned in the markets.

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TD Ameritrade January 2019 Investor Movement Index (Graphic: TD Ameritrade)

The reading for the four-week period ending January 25, 2019, puts the IMX at its lowest point since July 2012 when it hit 4.24 in the midst of Spain's debt crisis. The current reading ranks “Low” relative to the historic level of exposure investors took to the market.

TD Ameritrade clients were net buyers during the January period. Clients favored less volatile assets, including fixed income products, while buying among equities was light.

“Despite the longest running government shutdown, U.S. equity markets recovered in January fueled by well-received Federal Reserve announcements and strong job numbers,” said JJ Kinahan, chief market strategist at TD Ameritrade. “Still, ambiguity surrounding U.S.- China trade relations kept investors in more defensive parts of the market.”

Throughout January, the S&P 500 and the Dow Jones Industrial Average were both up more than 7 percent, with the Nasdaq Composite increasing nearly 9 percent. Federal Reserve Chairman Jerome Powell stated early during the period that the Fed would be patient following tensions between financial markets and the economy, signaling there would be no looming rate increase expected. It was also reported that the U.S. added more than 300,000 jobs during December, the fastest pace since February 2018.

TD Ameritrade clients took advantage of volatility when buying equities in January. Top equity buys included:

• Apple (AAPL)
• AT&T (T)
• General Electric (GE)
• Amazon (AMZN)
• Ford Motor Company (F)

Throughout the month, retail investors at TD Ameritrade also sold a number of popular names. Net sold equities included:

• Facebook (FB)
• Twitter (TWTR)
• Bank of America (BAC)
• Celgene Corporation (CELG)
• Gilead Sciences (GILD)
• Raytheon (RTN)

Millennial Buys & Sells
When compared to TD Ameritrade’s total client base, millennials once again favored pot stocks, including Aurora Cannabis (ACB) and Canopy Growth (CGC). Their purchases over the past few months paid off in January, with both stocks up during the period and CGC nearly doubling. Millennials also bought Tesla (TSLA) while the total population did not. This was the first time in six months millennials were not net buyers of Amazon (AMZN).

On the sell side, millennials took profits in Chipotle (CMG) and GoPro (GPRO), which were each up double-digits during the period. They also sold apparel companies Under Armour (UAA) and Nike (NKE).

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 more than 11 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 January 2010; to view the full report from January 2019; 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
TD Ameritrade provides investing services and education to more than 11 million client accounts totaling approximately $1.2 trillion in assets, and custodial services to more than 7,000 registered investment advisors. We are a leader in U.S. retail trading, executing an average of approximately 900,000 trades per day for our clients, more than a quarter of which come from mobile devices. We have a proud history of innovation, dating back to our start in 1975, and today our team of 10,000-strong is committed to carrying it forward. Together, we are leveraging the latest in cutting edge technologies and one-on-one client care to transform lives, and investing, for the better. Learn more by visiting TD Ameritrade’s newsroom at www.amtd.com, or read our stories at Fresh Accounts.

1TD Ameritrade, Inc. is a broker-dealer subsidiary of TD Ameritrade Holding Corporation. Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) /SIPC (www.SIPC.org).

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