TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD), is today revealing the Investor Movement Index SM reading for November 2013. The Investor Movement Index, or the IMX SM, is a proprietary, behavior-based index created by TD Ameritrade that aggregates Main Street investor positions and activity to measure what investors are actually doing and how they are positioned in the markets.
The November 2013 Investor Movement Index for the five weeks ending November 29, 2013, reveals:
- Reading: 5.42 (compared to 5.07 in October)
- Trend direction: Positive
- Trend length: 2 months
- Score relative to historic ranges: High
November’s IMX reading registered at the highest point since June 2011 and the second highest level since TD Ameritrade started tracking the IMX in January 2010. This reading follows the positive turn the IMX had taken in October after a dip in September. TD Ameritrade clients’ equity market exposure increased in part due to net buying activity. Recently broad market volatility has been low, but specific names clients chose to hold provided more volatility than the general market, which increased their exposure to equity market movements. Some widely held names included General Electric (GE), Apple (AAPL), Facebook (FB), Cisco (CSCO), and Microsoft (MSFT). Twitter (TWTR) was also a popular buy as clients began to build positions following the company’s initial public offering.
“Our clients are always looking for potential buying opportunities and we have consistently seen our clients purchase names on price dips,” said Nicole Sherrod, managing director of TD Ameritrade’s Trader Group. “For example, Tesla (TSLA), Salesforce (CRM), and Cisco (CSCO) were volatile in November and TD Ameritrade clients appear to have treated the price declines as buying opportunities.”