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TD Ameritrade Investor Movement Index: IMX Score Rises in November
Rhea-AI Impact
(Low)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
The Investor Movement Index (IMX) rose to 8.82 in November, up from 8.22 in October, indicating increased retail trading activity despite market volatility. In November, traders focused on sectors like Information Technology, Consumer Discretionary, and Communication Services. TD Ameritrade clients were net buyers, embracing names like Rivian (RIVN) and Meta (FB), while selling stocks such as Nio (NIO). Economic data showed inflation concerns, but early-month momentum was strong, with the S&P 500 and Nasdaq reaching all-time highs.
Positive
Investor Movement Index rose to 8.82, signaling strong retail trading interest.
Clients increasingly rotated into higher beta stocks.
Notable net buying activity in technology and consumer sectors.
Negative
Emergence of a new Covid-19 variant caused market concerns.
Higher-than-expected inflation data contributed to market volatility.
Retail traders are net buyers during a month of volatility propelled by mixed economic data and the emergence of a new virus variant
OMAHA, Neb.--(BUSINESS WIRE)--
The Investor Movement Index® (IMXSM) rose to 8.82 in November, up from 8.22 in October. 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.
TD AmeritradeNovember 2021 Investor Movement Index (Graphic: TD Ameritrade)
The reading for the four-week period ending November 26, 2021 ranks “High” compared to historic averages.
“In November, we saw clients increase exposure overall and rotate back into higher beta names,” said JJ Kinahan, chief market strategist, TD Ameritrade. “During a volatile month that saw the S&P 500 and Nasdaq 100 reach new all-time highs, retail traders embraced buys in the Information Technology, Communication Services and Consumer Discretionary sectors and seized profit-taking opportunities with some of retail’s biggest names.”
Equity markets started the period with upward momentum as Purchasing Managers’ Index (PMI) and Non-Farm Payroll reports exceeded expectations. However, in the weeks that followed, concerns began to build as economic data tracking inflation in the US came in higher than anticipated. Markets trended sideways throughout the month even as the benchmark 10-year Treasury rate moved higher, reaching just below the 1.7% threshold. Dispersion among the S&P 500 sectors was broad, with Technology moving over 5% higher while Communication finished down nearly 5%. While markets looked poised to finish the month higher, continuing the positive gains established in October, the emergence of a new Covid-19 variant along with hints from Federal Reserve Chairman Powell that the pace of tightening policy may be accelerated sent markets into a tailspin as the period came to a close.
TD Ameritrade clients were net buyers overall during the November IMX period, although market volatility was elevated throughout the month. TD Ameritrade clients initially sold equities at the start of the period, but resumed buying as the month progressed. Some of the popular equity names bought during the period were:
Rivian Automotive (RIVN)
PayPal Holdings (PYPL)
Walt Disney Company (DIS)
NVIDIA Corporation (NVDA)
Meta Platforms (FB)
Names sold during the period included:
Amazon Inc. (AMZN)
Walmart Inc. (WMT)
Shopify (SHOP)
Nio Inc. (NIO)
Taiwan Semiconductor Manufacturing (TSM)
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 November 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.
