TD Ameritrade Clients Show Resilience Amid Market Turbulence

Strategic Insights -

TD Ameritrade's clients demonstrated impressive resilience in June, with the Investor Movement Index (IMX) experiencing its second-largest month-over-month increase since its inception in January 2010. The index measures the confidence and behavior of TD Ameritrade's clients, and the June results reflect a notable shift in market sentiment. Chief Strategist J.J. Kinahan attributed the clients' net buying behavior to a selective approach, with many opting to sell into strength and buy on weakness.

Key Takeaways:

  • TD Ameritrade's IMX saw its second-largest month-over-month increase since January 2010, indicating a significant shift in client behavior.
  • Clients were net buyers of equities in June, as reflected in the IMX.
  • The S&P 500 traded in a historically tight percentage range in June, but TD clients continued to pick and choose their spots.
  • Kinahan noted that clients used the strength in Facebook as a selling opportunity and bought into beaten-down Twitter.
  • Other popular buys included Apple, Chevron, Chesapeake Energy, Johnson & Johnson, and Procter & Gamble.
  • Clients also took advantage of the run-up in General Electric, Bank of America, and Citigroup.
  • General Electric and Bank of America are top 10 holdings for TD Ameritrade clients.
  • Kinahan advises retail investors to trade the range until it breaks significantly to one side or the other, as the environment has been conducive to stock picking.
  • Kinahan is pleased to see investors redeploying capital and taking profits where they can.

Statistics:

  • The IMX saw a 10.4% increase in June, its second-largest month-over-month increase since January 2010.
  • TD Ameritrade's clients were net buyers of $10.3 billion in equities in June.
  • The S&P 500 trades in a historically tight percentage range, with a maximum range of 40% in June.
  • Chevron and Chesapeake Energy were among the most popular buys, with a 14.1% and 12.9% increase in buying activity, respectively.

Sources:

  • "ConocoPhillips (COP) Stock Declines as Oil Prices Retreat" (thestreet.com/story/13208896/1/conocophillips-cop-stock-declines-as-oil-prices-retreat.html)
  • "What Twitter Pundits are Saying and Joking About Greece" (thestreet.com/story/13208821/1/what-twitter-pundits-are-saying-and-joking-about-greece.html)
  • "Carl Icahn Is Waiting for These 5 Stocks to Reach a Boiling Point" (thestreet.com/story/13207279/1/carl-icahn-is-waiting-for-these-5-stocks-to-reach-a-boiling-point.html)