Investor Movement Index (IMX)

The Investor Movement Index (IMX) is a proprietary indicator published by TD Ameritrade in the United States. It aims to measure the sentiment and trends of retail investors in the market by tracking their trading behavior.

The IMX analyzes the buying and selling activities of TD Ameritrade customers across stocks, options, futures, and other assets in their portfolios. By considering customers’ trading decisions and changes in their portfolios, the IMX seeks to reflect the confidence levels and risk appetites of retail investors in the markets.

The IMX is used as an index and has been published monthly since 2010. It started with a value of 5.0 in 2013 and typically fluctuates between 2.0 and 8.0. A high IMX value indicates that retail investors are trading more and changing positions more aggressively, while a low IMX value reflects fewer trades and a more conservative approach.

The IMX can be used as an indicator to understand the sensitivity and trends of investors in the market. A high IMX value often suggests that retail investors are generally participating in market rallies, while a low IMX value indicates they are typically participating in market declines. However, the IMX should not be used as a standalone investment strategy and should be evaluated alongside other technical and fundamental analysis tools.

In conclusion, the Investor Movement Index (IMX) is a proprietary indicator that measures the sentiment and trends of retail investors in the market by tracking their trading behavior. It can provide a reference point for investors, but it should not be used as a standalone investment strategy.