TD Ameritrade’s Investor Movement Index: IMX Double Dips in November

TD Ameritrade, Inc. (“TD Ameritrade”), a broker-dealer subsidiary of TD Ameritrade Holding Corporation (NYSE:AMTD), is today releasing the Investor Movement Index® reading for November 2014. The Investor Movement Index, or the IMXsm, 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 Investor Movement Index for the four weeks ending November 28, 2014, reveals:

• Reading: 5.11 (compared to 5.22 in October)
• Trend direction: Negative
• Trend length: 2 month
• Score relative to historic ranges: Moderately High

“Increasingly, retail investors are showing us that investing is not an ‘all-or-nothing’ game for them,” said JJ Kinahan, chief strategist for TD Ameritrade. “We’re seeing clients respond to market moves in ways that are similar to professionals – they’re remaining engaged and making strategic adjustments where they see pockets of opportunity.”

The IMX declined for a second month in a row for the first time since early 2013. Client portfolios were less volatile relative to the S&P 500 in October compared to previous periods, and the lower sensitivity levels carried over into November, even though buying activity picked up as the month progressed. The decline marks the IMX at its lowest point since September 2013, but the IMX still remains moderately high relative to its history, settling at 5.11 for the November period.

The rallies in the major market indexes that began in the latter part of October continued through November. Favorable earnings reports and earnings forecasts, a continuation of falling oil prices, decreasing Ebola concerns, the end of midterm elections and an overall positive tone to U.S. economic indicators seemed to help boost the equity markets. The S&P 500 and the Dow Jones Industrial Average saw steady increases throughout the month and both closed around 2.5 percent higher. The Nasdaq Composite Index dipped briefly at the start of the month, but ended more than 3 percent higher. Oil and oil producing companies saw significant declines, particularly at the end of the month when OPEC decided to maintain the current levels of production. By the end of November, oil was trading at levels not seen since 2009.

Popular buys included stocks that saw price declines in November. Clients bought shares of oil producing companies whose valuations followed the drop in oil prices, such as Transocean (RIG), BP PLC (BP), and Haliburton (HAL). Falling stock prices and buying interest were not limited to the energy sector; in the technology sector, Twitter (TWTR) saw its price dip and was a net buy, as did Gilead Sciences (GILD) in healthcare. IBM’s stock price plunged in October following earnings but seemed to stabilize in November, as clients were net buyers. Other popular names bought included Alibaba (BABA), Disney (DIS), and GoPro Inc. (GPRO).

TD Ameritrade clients were net sellers of some popular names that saw increases. Whole Foods Market (WFM) was a popular buy in the spring when its stock price fell, and in November, clients appeared to take profits when the company reported favorable earnings and the stock climbed back to levels seen before its springtime drop. American Airlines Group (AAL) was also a popular sell - the stock made a sharp recovery from its October low and then jumped higher on news of lower fuel costs. The trend carried over into the technology sector with Cisco (CSCO) and Yahoo (YHOO), as well as in the financial sector with Citigroup (C) and Bank of America (BAC). Intel (INTC), Oracle (ORCL) and Sirius XM (SIRI) were also sold.

For more information on the Investor Movement Index, including historical IMX data going back to December 2010, to view the full report from November 2014, 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.

About TD Ameritrade Holding Corporation

Millions of investors and independent registered investment advisors (RIAs) have turned to TD Ameritrade’s (NYSE:AMTD) technology, people and education to help make investing and trading easier to understand and do. Online or over the phone. In a branch or with an independent RIA. First-timer or sophisticated trader. Our clients want to take control, and we help them decide how - bringing Wall Street to Main Street for more than 39 years. An official sponsor of the 2014 and 2016 U.S. Olympic and Paralympic Teams, as well as an official sponsor of the National Football League for the 2014, 2015 and 2016 seasons, TD Ameritrade has time and again been recognized as a leader in investment services. Please visit TD Ameritrade's newsroom or www.amtd.com for more information.

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Source: TD Ameritrade Holding Corporation

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