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%).