TD Ameritrade's investor gauge breaks record

The Investor Movement Index rises to 5.74 from 5.66 in January, gaining for the fifth straight month and setting a new record for the third consecutive month (gauge is 4 years old).

Buying activity was concentrated in tech and mixed across other sectors. "Clients appeared to be focused on stock-picking strategies, as net buying activity in U.S. ETFs and mutual funds was lower than in previous months." This line jibes with earlier reports of the lack of correlation among stocks and outflows from the SPY in favor of active strategies. Investors were net sellers of international funds and ETFs.

Not necessarily chasing momentum plays, clients are rotating into underperforming sectors, says TD's chief strategist JJ Kinahan. Among those being purchased were energy-related names trading at multi-month lows: Chevron (CVX +0.2%), Kinder Morgan (KMP -0.7%), and Sea Drill (SDRL -0.2%).

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Comments (3)
  • CLUB 198
    , contributor
    Comments (105) | Send Message
    KMP is a STEAL right now
    10 Mar 2014, 06:31 PM Reply Like
  • petethebeet
    , contributor
    Comments (837) | Send Message
    Not sure whether this is a so-called smart money or dumb money indicator … I bought cvx last week and sometimes my timing is a little off in markets like this one, where I am guessing this market either shoots up or falls like a rock hahahha.
    10 Mar 2014, 06:45 PM Reply Like
  • Eric Rasbold
    , contributor
    Comments (177) | Send Message
    Too bad I don't have more money for the KM's. I bought the last dip, but this is getting retarded.
    10 Mar 2014, 09:24 PM Reply Like
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