(PTNQ) Pacer Trendpilot 100 - Ratings and Ratios

The Pacer Trendpilot100 ETF (NASDAQ:PTNQ) is an exchange-traded fund that employs a systematic trend-following strategy to navigate the NASDAQ-100 Index. By allocating its assets dynamically between the NASDAQ-100 Index, 3-Month U.S. Treasury bills, or a combination of both, the fund seeks to capitalize on the momentum of the underlying index while minimizing potential losses during downturns.

The funds investment approach is centered around a simple yet effective mechanism: it adjusts its exposure to the NASDAQ-100 Index based on its performance relative to its 200-business day historical simple moving average. This means that if the NASDAQ-100 Index is trending upwards, the fund will be fully invested (100%) in the index. Conversely, if the index is trending downwards, the fund may allocate 50% to the NASDAQ-100 Index and 50% to 3-Month U.S. Treasury bills, or even 100% to 3-Month U.S. Treasury bills, to reduce its equity exposure and mitigate potential losses.

As a non-diversified fund, PTNQ is heavily reliant on the performance of the NASDAQ-100 Index, which is dominated by the largest and most liquid technology stocks in the US market. This concentration can result in higher volatility, but it also allows the fund to tap into the growth potential of the underlying index. With an AUM of $1.218 billion, PTNQ has established itself as a sizable player in the ETF market.

Analyzing the technical data, we can observe that the funds last price is $68.00, slightly above its 20-day and 50-day simple moving averages. However, it is still below its 200-day simple moving average of $71.76, indicating a potential downtrend. Given the current ATR of 0.56, representing a 0.82% daily volatility, we can expect the funds price to continue fluctuating within a narrow range. Based on the current technical setup and fundamental data, our forecast suggests that PTNQ may experience a moderate rebound in the short term, potentially reaching $70.00, as the NASDAQ-100 Index continues to exhibit signs of recovery. Nevertheless, a sustained break above the 200-day SMA will be crucial for a more significant uptrend to materialize.