The Investor Movement Index® (IMXSM) increased .76 to 9.08 in June, up from its May score of 8.32. 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.
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TD Ameritrade June 2021 Investor Movement Index (Graphic: TD Ameritrade)
The reading for the four-week period ending June 25, 2021 ranks “High” compared to historic averages.
“The S&P 500 and Nasdaq achieved record highs amid generally positive economic data and cooling inflation fears, helping drive our Investor Movement Index to a new peak in June,” said JJ Kinahan, chief market strategist, TD Ameritrade. “We’re heading into what is usually the summer lull, with relatively light trading volumes and low volatility, but corporate earnings loom large in July. The guidance from big names, starting with Financials, will be a focal point, and depending on what is said, the markets as a whole are likely to move based on their outlooks for the rest of the year.”
Equity markets were mixed during the period. The Dow Jones Industrial Average moved lower, down 0.3% during the period. The S&P 500 and Nasdaq Composite both moved higher, reaching all-time highs in the process. The S&P 500 increased by 1.8%, with the Nasdaq up 4.5%. Economic news was generally positive, although retail sales fell by 1.3% as consumer spending shifted from goods to services. President Biden and a group of senators announced a $1 trillion bipartisan infrastructure agreement to overhaul transportation, water, and broadband capabilities. Federal Reserve officials signaled an earlier-than-expected interest rate increase as the economy recovers from the pandemic and inflation heats up, while investors generally continue to believe recent inflation will be transitory.
TD Ameritrade clients were net buyers overall during the June IMX period. Some of the popular equity names bought during the period were:
- Airbnb Inc. (ABNB)
- Alibaba Group Holding Ltd. (BABA)
- Coinbase Global Inc. (COIN)
- Ford Motor Co. (F)
- Nvidia Corp. (NVDA)
TD Ameritrade clients took advantage of rising prices to sell some equities during the period, including:
- Eli Lilly and Co. (LLY)
- Moderna Inc. (MRNA)
- Peloton Interactive Inc. (PTON)
- Twitter Inc. (TWTR)
- Zoom Video Communications Inc. (ZM)
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 June 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.
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Source: TD Ameritrade, Inc.