The Investor Movement Index (IMX) provides data based on real investing behavior that helps investors gauge the sentiment of retail investors in the stock market.

The index provides information about what investors actually do, not just what they say they are doing.

By tracking the trading activity of retail investors on the TD Ameritrade platform, the IMX can provide insights into the behavior and risk appetite of individual investors.

What is the Investor Movement Index (IMX)?

The Investor Movement Index is a proprietary, behavior-based index developed by TD Ameritrade, one of the largest online brokerage firms in the United States.

Using data from a sample of millions of funded client accounts, the index creates a useful snapshot that can be tracked over time and used to figure out how their clients are feeling at the moment.

The IMX is calculated using a complex algorithm that analyzes the trading activity of retail investors on the TD Ameritrade platform, taking into account factors such as equity exposure, volatility, and trading volume.

IMX

How to Use the Investor Movement Index (IMX)

In general, when the IMX goes up, investors are becoming more bullish, and when it goes down, they are becoming more bearish.

There are no “bullish” or “bearish” thresholds for the index. Instead of looking at a single number, you should look at how the current score is relative to other periods.

TD Ameritrade also gives more information about how the index has changed over time than just the indicator itself.

To understand the Investor Movement Index, consider the following:

  • Index value: The IMX is a numerical value that represents the sentiment of retail investors. A higher value indicates increased bullishness, while a lower value suggests greater bearishness or caution among investors.
  • Historical comparison: By comparing the current IMX value to historical levels, investors can gain insights into whether retail investors are becoming more or less bullish over time.
  • Market trends: The IMX can help investors identify potential market trends and reversals by providing insights into the behavior and risk appetite of individual investors.

Why is the IMX important?

The Investor Movement Index is important for several reasons:

  • Retail investor sentiment: The IMX offers insights into the sentiment of retail investors, which can help investors identify potential market trends and reversals.
  • Trading behavior analysis: By monitoring the IMX, investors can gain a better understanding of the factors influencing individual investor behavior and risk appetite.
  • Market analysis: The IMX can serve as an additional data point for investors seeking to develop a comprehensive understanding of market sentiment.

Who publishes the Investor Movement Index (IMX)?

The Investor Movement Index is calculated and published by TD Ameritrade, using proprietary data collected from the trading activity of retail investors on its platform.

Where can I find the Investor Movement Index (IMX)?

The Investor Movement Index results are available to the public through the TD Ameritrade website, typically updated every month.

The website provides a summary of the latest IMX value, along with historical data and analysis of the factors contributing to the index’s movement.