TD Ameritrade's IMX Index Measures Retail Investor Sentiment
By Sam Mattera | February 5, 2013 6:53 AM EST
Steve Quirk, TD Ameritrade's Senior VP, appeared on CNBC's Halftime Report earlier to detail the company's new indicator.
The indicator, called the IMX Index, measures the sentiment of the company's retail clients. TD Ameritrade is one of America's biggest brokerages for retail investors.
The IMX Index measures what TD Ameritrade's clients are actually doing in the market. Rather than just watching fund flows into mutual accounts, the IMX Index can paint a more accurate picture.
Specifically, the Index takes into account derivative positions as well as equity purchases.
Qurik noted that in January investors turned a bit more bearish than in the fall; while on a net basis investors were still purchasing stocks in January, they shifted their purchase away from high beta names like lululemon (NASDAQ: LULU [FREE Stock Trend Analysis]) in favor of less market sensitive stocks like Exxon Mobil (NYSE: XOM).
In addition, investors were increasingly pairing their long equity positions with downside protection, buying puts and taking similar measures.
Overall, Quirk challenged the traditional notion that retail money was the “dumb” money, calling the notion “antiquated.”
On the whole, Quirk stated that TD Ameritrade was seeing increased activity across the board, though things certainly weren't back to the way they were before 2008. He described a three step process where retail investors gradually move “from sitting into the stands, to the sidelines to getting into the game.”
Investors can get this indicator on Benzinga Pro's calendar.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Copyright Benzinga. All rights reserved.
Most Popular Slideshows
- Gennady Golovkin Next Fight Options: Canelo Alvarez, Miguel Cotto Or Julio Cesar Chavez Jr.
- NFL MNF: Pittsburgh Steelers 30, Houston Texans 23 [PHOTOS]
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- New Zealand Economy Benefits From Australia's Big Investments; Kiwi Down After RNBZ Comments
- ETF Outlook for Thursday, January 2 (FEZ, FXI, SPY, XHB)
- January Second Trading: Always Interesting
- 13 Things Investors Learned In 2013 - Part II
- Are Diversity and Quality the Way to Profit from the Rebound in Gold and Coal?
- No Mercy: ISIS, Father Stones to Death Daughter for Alleged Adultery
- Boy Stoned To Death For Alleged Rape, Victim Receives Dowry From Militants
- ASUS Releases A Teaser Indicating The Arrival of New Zenfone and ZenWatch On October 28
- Russia is Creating Underwater Combat Robots to Protect its Arctic Territories
- iOS 8 Jailbreak Release Date is Doomed as Team Evad3rs Opts Out, Pangu Hits Snag – Report
- Google Nexus 6 vs. iPhone 5S: 4 Important Things to Consider Before Switching to Android Lollipop
- Swedish Military Spots ‘Russian Submarine’ Off Stockholm Coast, An Alarming ‘Security Game Changer’