The market rebounded during July, helped by a relatively strong earnings season and reassuring messages from the Fed regarding
the economic outlook. According to the latest Investor Movement Index (IMX), TD Ameritrade clients reduced their exposure to equity markets.
Net Buys In A Selling Environment
This is how the IMX works: when the index’s score surges, it means investors' recent past activity has leaned toward a bullish
stance; conversely, when the score declines, investors' recent past activity has tended towards bearishness.
Over July, the IMX declined by 6.2 percent, to 4.69, not only because TD Ameritrade clients were net equity sellers over the
month, but also due to “lower volatility relative to the overall market of several widely held names” like Apple
Inc. (NASDAQ: AAPL), Facebook Inc
(NASDAQ: FB) and Bank of America Corp (NYSE:
BAC).
TD Ameritrade’s Managing Director of Trading, Nicole Sherrod, shared a more detailed look into the index, pointing out a few
names that were net buys in July, despite the overall selling seen in the market.
Ahead of their earnings reports, Amazon.com, Inc. (NASDAQ: AMZN) and Facebook were net buys. And bulls got their reward, as both companies
beat the Street’s consensus estimates, taking their stocks to record highs.
Also popular in July were dividend-paying companies like Wells Fargo & Co (NYSE: WFC), Barclays PLC (ADR) (NYSE: BCS), Bank of America and Ford Motor Company (NYSE: F).
Two more popular net buys in July were Netflix, Inc. (NASDAQ: NFLX) and Tesla Motors Inc (NASDAQ: TSLA).
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