Many ETFs, especially the leverage & inverse ETFs, will put most of their $$ in those cash-type liquid instruments with just enough into leveraged derivatives that mirror the index they are tracking vs. the more costly & cumbersome method of buying & selling all the individual stocks within that index or sector.

Stops should be proportional to your preferred price target or targets (if planning to take partial profits along the way. Generally speaking, I’d say a stop either somewhat below today’s candle on ERY or somewhat below yesterday’s candle, max.

I suspect will be looking at a mostly stagflationary environment for some time to come (stagnant growth coupled with inflation) but regardless, I’ll let the charts be my guide as what to trade & how to trade it (long or short).

XLE (energy sector ETF) along with the 2 big dogs: XOM & CVX, all broke below their primary uptrend lines impulsively last Thursday, backtested them from below since, & were rejected impulsively from below the TL’s today with /CLcrude oil futures also breaking below its uptrend line today so energy stocks likely to see more downside in the coming weeks IMO.

That never crossed my mind, makes sense. Thanks.

They have to be able to make redemptions and they are obviously expecting them so they have to be liquid or Facing solvency…

Dreyfus Government Secs Cash Mgmt Admin DAPXX 29.50%
Goldman Sachs FS Treasury Intms Instl FTIXX 21.87%
Energy Select Sector Index Swap N/A 19.85%
Goldman Sachs FS Government Instl FGTXX 2.19%