This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Main Street Investor Sentiment Monthly Update

TheStreet Premium Services

A complimentary preview
of Options-Profits Previews

Market participants look at many measures to gauge investor sentiment, even though they don't always show an accurate picture. The CBOE Volatility Index (VIX), often referred to as the fear index, shows the market's expectation of 30-day volatility, but it does not parse out institutional or hedge fund activity. Surveys like the Thomson Reuters/University of Michigan Consumer Sentiment, AAII online portals and broker polls are not always consistent with investing behavior. Mutual Fund Flows capture money flows in and out, but are outflows going to other investments?

Now there is a more accurate measure of true retail behavior from TD Ameritrade (AMTD). The Investor Movement Index (IMX) leverages data from from one of the largest pools of retail investors and traders in the world to create a behavior-based proprietary index which provides insight into Main Street Sentiment.

What is included?

Equities, Options, ETFs, Bonds, Mutual Funds, Cash.

What about leverage?

The riskier the portfolio exposure, the more intensely bullish OR bearish the portfolio is scored. Taken into consideration are, Margin, Options, Higher Beta Stocks, Leveraged ETFs.

How is it calculated?

Each portfolio is assigned a score. Each portfolio counts as one "vote". The IMX is the median of all the portfolio scores.

The latest August 2013 Investor Movement Index for the four weeks ending August 30, 2013 reveals:  

¿ Score: 5.16 (compared to 4.87 in July)

¿ Trend direction: Positive (trend direction shows whether the month-over-month change in score is positive or negative or whether there is no change.)

¿ Trend length: 1 Month (number of consecutive months the trend direction has been positive or negative)

"This is one of the largest changes in sentiment that we have seen in a while," says Nicole Sherrod, Managing Director of TDAmeritrade's Trading Group. "Our clients used the pullback in August as a buying opportunity, and we are pleased to see the retail investor use more sophisticated tactics and practice portfolio rotation."

Sherrod noted that clients continued to accumulate Tesla (TSLA), as the stock gained 26% month over month and traded at record levels and added to Ford (F) as the stock pulled back in August. Clients were net buyers of some basic materials companies including BP (BP), Kinder Morgan (KMP) and Potash (POT). Clients were net sellers of some financial names including Bank of America (BAC) and Goldman Sachs (GS). Both Apple (AAPL) and Facebook (FB) continue to be widely held, but our clients were net sellers of both names in August as their stock prices rose. Additional popular names sold included, Chesapeake Energy (CHK), Merck (MRK), and QUALCOMM (QCOM).


Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
Back to Nasdaq


Top Rated Stocks Top Rated Funds Top Rated ETFs