TD Ameritrade Investor Movement Index IMX Continued to Rise in August
The Investor Movement Index (IMXSM) increased to 4.93 in August, up 6.48 percent from its July score of 4.63. 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 August 2020 Investor Movement Index (Graphic: TD Ameritrade)
The reading for the four-week period ending August 28, 2020, ranks “Moderate Low” compared to historic averages.
“In August, the market had an incredible run as the technology stocks led the way,” said JJ Kinahan, chief market strategist at TD Ameritrade. “TD Ameritrade clients used this opportunity to increase their exposure to the market for the sixth month in a row, and in many cases were buyers of these market-leading technology stocks.”
Equity markets continued their upward trend during the August period, with the S&P 500 and Nasdaq Composite both ending the period at record highs and crossing historic marks. Technology stocks led the charge as the Nasdaq Composite increased by 8.84 percent. The move higher was bolstered by hopes that a COVID-19 vaccine is on the horizon, given multiple announcements from the Food and Drug Administration (FDA) and others. The Federal Reserve announced it will adopt flexible average inflation targeting into its monetary policy framework, which will allow inflation to rise “moderately” above its two percent target while keeping its benchmark interest rate near zero. Also making headlines during the period were Apple Inc. (AAPL) and Tesla Inc. (TSLA), with Apple announcing its fifth stock split and Tesla announcing its first.
TD Ameritrade clients were net buyers of equities, and net buyers overall. Buying was the heaviest among Information Technology, Consumer Discretionary, and Health Care sectors, with additional buying in Fixed Income. Some of the popular names that clients bought during the period included:
- Tesla, Inc. (TSLA)
- Apple Inc. (AAPL)
- Microsoft Corporation (MSFT)
- Teledoc Health Inc. (TDOC)
- Moderna Inc. (MRNA)
Some of the names that they net sold during the period included:
- The Walt Disney Company (DIS)
- MGM Resorts International (MGM)
- Twitter (TWTR)
- Ford Motor Co. (F)
- Halliburton Co. (HAL)
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