The Investor Movement Index (IMX) offers insights based on actual investing behavior, enabling investors to assess the sentiment of retail investors in the stock market. This index reflects what investors do in practice rather than merely what they claim to be doing.

By monitoring the trading activities of retail investors on the TD Ameritrade platform, the IMX provides valuable insights into individual investors' behavior and their appetite for risk.

The Investor Movement Index is a proprietary, behavior-driven index created by TD Ameritrade, one of the largest online brokerage firms in the United States. Utilizing data from a sample of millions of funded client accounts, the index offers a useful snapshot that can be tracked over time to assess the current sentiment of their clients.

The IMX is computed using a sophisticated algorithm that evaluates the trading activities of retail investors on the TD Ameritrade platform, considering factors such as equity exposure, volatility, and trading volume.

Generally, when the IMX rises, it indicates that investors are becoming more optimistic, while a decline suggests a shift towards bearishness. There are no specific “bullish” or “bearish” thresholds for the index. Instead of focusing on a single figure, it is more insightful to compare the current score with those from previous periods.

TD Ameritrade also provides additional information regarding the historical changes of the index beyond just the current indicator.

To comprehend the Investor Movement Index, consider the following:

• Index value: The IMX is a numerical representation of retail investor sentiment. A higher value indicates increased optimism, while a lower value reflects greater caution or bearishness among investors.
• Historical comparison: By comparing the current IMX value to historical data, investors can discern whether retail investors are becoming more or less optimistic over time.
• Market trends: The IMX can assist investors in identifying potential market trends and reversals by offering insights into individual investors' behavior and risk appetite.

The Investor Movement Index holds significance for several reasons:

• Retail investor sentiment: The IMX provides insights into retail investor sentiment, aiding in the identification of potential market trends and reversals.
• Trading behavior analysis: By tracking the IMX, investors can better understand the factors that influence individual investor behavior and risk appetite.
• Market analysis: The IMX serves as an additional data point for investors looking to develop a comprehensive understanding of market sentiment.

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

The results of the Investor Movement Index are publicly accessible through the TD Ameritrade website, typically updated on a monthly basis. The website offers a summary of the latest IMX value, along with historical data and analysis of the factors influencing the index’s movements.