TD Ameritrade Investor Movement Index: IMX Score Rises as Markets Hit Record Highs in February

Clients were net buyers of equities and net buyers overall during a period of light volatility.

OMAHA, Neb.–(BUSINESS WIRE)–The Investor Movement Index^® (IMX^SM) increased to 7.55 in February, up 9.26 percent from its January score of 6.91. 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 February 26, 2021 ranks “Moderate High” compared to historic averages.

“The continued rally in February matched our clients’ behavior in taking on more exposure to the markets, particularly the S&P 500,” said JJ Kinahan, chief market strategist, TD Ameritrade. “TD Ameritrade clients favored buys in Information Technology, Healthcare, and Consumer Discretionary stocks in February, with many driven by the cooperative monetary policy still being laid out by the Fed. Our clients did seize some selling opportunities during the period as well, as some vaccine makers and other pandemic mainstays hit all-time-highs.”

The S&P 500, Dow Jones, and the Nasdaq Composite all hit record highs during the period, helped by optimism around new stimulus measures and after Federal Reserve Chairman Jerome Powell reiterated his intention to maintain ultra-low interest rates and continue the bank’s asset-purchase policies. Also helping move markets higher was the possibility of another COVID-19 vaccine option, this time from Johnson & Johnson (JNJ).

In February, TD Ameritrade clients were net buyers of equities and net buyers overall. Some of the popular names bought during the period were:

• Apple Inc. (AAPL)
• Palantir Technologies (PLTR)
• Qualcomm Inc. (QCOM)
• Tesla Inc. (TSLA)
• AMC Entertainment Holdings Inc. (AMC)

TD Ameritrade clients did find some names to sell during the period, including:

• Moderna Inc. (MRNA)
• BioNTech SE (BNTX)
• Novavax Inc. (NVAX)
• Zoom Video Communications Inc. (ZM)
• Alibaba Group Holdings (BABA)

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 February 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

TD Ameritrade provides investing services and education to self-directed investors and registered investment advisors. A leader in U.S. retail trading, we leverage the latest in cutting edge technologies and one-on-one client care to help our clients stay on top of market trends. Learn more by visiting www.amtd.com.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org), a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2021 Charles Schwab & Co. Inc. All rights reserved.

Source: TD Ameritrade, Inc.

Contacts

At the Company
Margaret Farrell

Sr. Manager, Corporate Communications

(203) 434-2240

margaret.farrell@tdameritrade.com