The Investor Movement Index, or IMX, 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. In May 2017, the IMX gained momentum and jumped up 1% from April’s pullback, coming in at 6.13.
“The retail investor has largely been a buyer for the last year and half, or so, and it has paid off for them,” JJ Kinahan, Chief Strategist at TD Ameritrade said.
IMX data indicated that investors stayed with Nasdaq-listed large cap stocks that have been market outperformers and show as net buys, time and again, including: Apple (AAPL), Facebook (FB), Amazon.com (AMZN) and Tesla (TSLA). TD Ameritrade clients also increased their net holdings in Ford (F), AT&T (T), Verizon (VZ), Advanced Micro Devices (AMD) and Berkshire Hathaway (BRK.B).
Consumer Staples and Services were net sells for the second month in a row including: Whole Foods (WFM), Arconic (ARNC), and Newell Brands (NWL). Healthcare heavyweight Bristol-Meyers Squibb (BMY) and large cap financial, Citigroup (C), were net sells after the stock reached a 52-week high. American Airlines (AAL), Mobileye (MBLY) and Yahoo! (YHOO) were also net sells.
To see if Kinahan thinks the market can continue on its move higher, be sure to check out this TradeTalks interview with Jill Malandrino from the Nasdaq MarketSite. For more information, Contact sales@nasdaq.com for more information
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