IMX trends slightly higher after all major indices set new records in August

The Investor Movement Index^® (IMX^SM) moved higher to 8.38 in August, up from 8.34 in July. 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 2021 Investor Movement Index (Graphic: TD Ameritrade)

The reading for the five-week period ending August 27, 2021 ranks “High” compared to historic averages.

“We’ve seen all the major indices hit new highs as the markets had their seventh-straight winning month, which has created quite a positive environment,” said JJ Kinahan, chief market strategist, TD Ameritrade. “With economic data, the Delta variant, changing geopolitics and inflation fears sending mixed messages, investors should remain watchful as we head into September, which has a reputation for being one of the most volatile months of the year.”

Equity markets moved higher during the August timeframe. All three major equity indices set new all-time highs, with the S&P 500 notching seven months of consecutive gains, reaching record levels, and the Dow Jones Industrial Average hit 35,000 for the first time ever. The Nasdaq 100 had its best month, increasing 4.16%. The Dow Jones Industrial Average increased 1.21%, while the S&P 500 moved higher by 2.6%. Markets were quick to move past a mid-month pullback as the Federal Reserve minutes from the July FOMC meeting pointed towards scaling back asset purchases in the months to come. This was likely driven by economic data coming in below expectations for many indicators, potentially giving the FOMC room to hold off on tightening monetary policy at their September meeting.

TD Ameritrade clients were net buyers of products overall during the August IMX period, but were net sellers of equities while being net buyers of those assets considered to be less risky, including fixed income. Some of the popular equity names bought during the period were:

• Apple Inc. (AAPL)
• Ford Motor Co. (F)
• Nvidia Corp. (NVDA)
• Microsoft Corp (MSFT)
• SoFi Technologies Inc. (SOFI)
• General Motors (GM)

TD Ameritrade clients took advantage of rising prices to sell some equities during the period, including:

• Tesla Inc. (TSLA)
• Netflix Inc. (NFLX)
• Advanced Micro Devices Inc. (AMD)
• Chewy Inc. (CHWY)
• Bank of America Inc. (BAC)

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 August 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.

Brokerage services provided by TD Ameritrade, Inc., member FINRA (www.FINRA.org) / SIPC (www.SIPC.org), a subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2021 Charles Schwab & Co. Inc. All rights reserved.

Source: TD Ameritrade, Inc.

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