If you followed yesterday’s trade and initiated a long position in volatility, congratulations! VIX is up 10% this morning and could continue to climb.
Futures are deep in the red this morning with big tech under pressure again. Yesterday tech stocks dragged the S&P and the Nasdaq lower after the Federal Reserve pledged to keep interest rates low for years. While the Nasdaq lagged the Russell 2000 led, indicating a shift into small cap. Small cap stocks have underperformed the broader market over the past year. The Russell 2000 Index has provided a total return of 9.2% over the past 12 months, compared to the S&P 500’s total return of 23.9%.
On deeper investigation of the small cap movement, our research team is recommending one stock for its growth.
TTM Technologies Inc, (TTMI) manufactures circuit boards for use in a variety of electronic products, including routers, servers, memory modules and cellular base stations. For Q2 2020 TTMI saw net sales increase by 8.2% YOY. CEO Tom Edman attributes the company’s success amid the COVID-19 pandemic in part to its diversified mix of end markets.
