An increase in relative volatility among widely held names, including Tesla Inc. (TSLA), Amazon Inc. (AMZN), and The Walt Disney Company (DIS) caused an increase in the IMX score during the March period
OMAHA, Neb.–(BUSINESS WIRE)–The Investor Movement Index® (IMXSM) increased to 8.21 in March, up 8.74 percent from its February score of 7.55. 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.
The reading for the four-week period ending March 31, 2021 ranks “High” compared to historic averages.
“Volatility early in the period, particularly as the tech sector entered correction territory, appeared to lead TD Ameritrade clients to seize buying opportunities in March, continuing a pattern we saw throughout the first quarter of 2021,” said JJ Kinahan, chief market strategist, TD Ameritrade. “As the Covid-19 vaccine rollout progressed, investors appeared to be adjusting their portfolios to ‘what’s next,’ selling some of the areas that have outperformed, such as financials, and buying names that have been beaten up during the month that might tie in nicely with recovery in the long term.”
Equity markets reached new heights during the March IMX period, with the S&P 500 and Dow Jones Industrial Average both reaching all-time highs, increasing by 4.3 percent and 6.9 percent respectively as the Federal Reserve vowed to maintain its easy monetary policy until the U.S. economy recovers further. The Tech sector struggled, with the Nasdaq Composite decreasing by 0.4 percent. Congress passed a $1.9 trillion stimulus package, which should benefit U.S. household spending after a decrease of one percent in February. Jobless claims reached their lowest level of the pandemic, adding to evidence the economy is ramping up one year after it officially began in the U.S.
In March, TD Ameritrade clients were net buyers overall and net purchased equities and U.S. Stock ETFs. Some of the popular names bought during the period were:
- Apple Inc. (AAPL)
- Advanced Micro Devices Inc. (AMD)
- Nvidia Corp. (NVDA)
- Square Inc. (SQ)
- Walmart Inc. (WMT)
TD Ameritrade clients did find some names to sell on strength during the period, including:
- Facebook Inc. (FB)
- Wells Fargo Inc. (WFC)
- Citigroup (C)
- Gamestop Inc. (GME)
- Fedex Corp. (FDX)
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 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 March 2021; 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 thinkorswim Mobile platforms.
Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold. All investments involve risk including the possible loss of principal. Please consider all risks and objectives before investing.
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
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Source: TD Ameritrade, Inc.
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