Schwab Trading Activity gauge slips in August, stays at moderate levels

The Schwab Trading Activity Index, a measure that analyzes retail investor stock positions and trading activity from Charles Schwab’s (NYSE:SCHW) client accounts, edged down to 53.16 in August from 54.81 in July, as investors became more risk-averse amid a more volatile macroeconomic environment.

Despite the dip, the gauge remained at moderate levels compared to historic averages. The latest reading covers the five-week period ended Aug. 30, 2024.

“Schwab clients appeared to rotate out of equities and into fixed income securities as a means of de-risking, which pushed the overall STAX score lower this month,” said Joe Mazzola, head Trading & Derivatives Strategist at Charles Schwab.

“While the August trading period started with a bang on August 5 – a day that’s been called a ‘meltdown’ or ‘crash’ by many – the markets recovered remarkably quickly, and, despite net selling overall, we did see many Schwab clients using the volatility to their advantage and taking the opportunity to buy the dip,” he added.

Popular names bought by Schwab clients during the August STAX period featured: Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT) and Advanced Micro Devices (NASDAQ:AMD).

Names net sold by clients during the period included: Meta Platforms (NASDAQ:META), Apple (NASDAQ:AAPL), Starbucks (NASDAQ:SBUX), PayPal Holdings (NASDAQ:PYPL), and Palo Alto Networks (NASDAQ:PANW).