Note the Negative Divergence (the price continues to make higher highs while the Stochastic is making lower highs) that was forming on TZA from 12:30 to approximately 1:40pm at which time both the Stochastic and the price turned down abruptly. As this was happening we were monitoring the TNA chart (see below) and took a position at 77.87 at 1:42pm; the price peaked at 78.65, a gain of 78¢ in less than an hour.  Then at 2:07pm we bought TZA at 39.90 (note the perfect VEE clean formation) and it went up as high as $40.23 before backing up, for a gain of 32¢.  Normally we like to see both the K and D lines of the Stochastic go below the 20 line before turning back up; however, since this was such a perfect example of a downward trajectory, it proved to be a good set up.

TNA