The MTG Stalk Sheet
February 4, 2010

The MTG Stalk Sheet presents you with the best individual stocks that Morpheus Trading Group is stalking for potential trade entry each day, all in a concise and easy to understand format. Please be sure to read the MTG Stalk Sheet User Guide in order to understand the terminology below and to receive the maximum benefit from your subscription. Enjoy!


"FULL-SERVE" STALK LIST

There are no new official setups this morning (RINO is still an official trade if it triggers). As we mentioned earlier this week, we expect any rally off the lows in the market to be short lived, so we'll probably see more selling pressure come in to the market next week. Aside from biotech stocks and a few strong tech stocks (LXK & NETL), there isn't a whole lot to get excited about. Financial stocks may be in trouble here, as JPM cracked an obvious support level last week and is wedging higher into resistance (which is bearish). BAC may also have a hard time breaking back above the 50-day MA.

We will send an intraday alert if any new trades are made.




RINO - RINO International

  • Industry - Waste Management Services
  • Side - Long
  • Shares - 200
  • Stalking since - Feb. 3
  • Timeframe - 2 - 5 days
  • Trigger - 21.89
  • Target - (will send alert)
  • Stop - 20.29
  • Notes -
      • Like CRM above, RINO is a short-term play on an oversold chart.
      • We are looking for a quick 2-5 day pop in price.
      • The buy entry is over yesterday's high.
      • The stop is below yesterday's low.
      • This is a pure short-term momentum play due to the weak broad market action.
      • Small share size. We typcially risk %0.3% of our account on these types of setups.
      • Trade expectations - Look for RINO to rally to the 24.00-25.00 area.
    "SELF-SERVE" STALK LIST - UPDATED EVERY MONDAY (Click here to view the "Self-Serve" Stalk List section of the user guide.)

      LONG WATCHLIST AND TRIGGER PRICES - (changes to trigger prices are highlighted in red)

      Pullback entries - (2-5 day pullback in a strong uptrend or pullback to the 20 & 50-day MA's)

        - New setups

      • GILD - buy pullback to 46.75 - 47.00
      • TKC - 18.80 (move out after undercut of 20-day EMA)

        - Previous setups
      • SHLD - 95.00 (undercut of 20-day EMA)

        - Triggered
      • NKTR - 11.60 (triggered 2/2)
      • CELG - 57.61 (breakout above hourly downtrend line)(triggered 2/2)
      • SEED - 11.76 (pullback to 50-day MA)(triggered 2/2)
      • ISRG - 332.00 (undercut gap up bar, ready to push higher w/ help from market)(triggered 2/2)
      • MMR - 15.81 (breakout above tight trading range)(triggered 2/2)
      • GMCR - 85.20 (false triggered on the open yesterday, as the price action could not hold above 85.00)


      Breakout entries - (from cup and handles, bull flags, flat bases, and downtrends)

        - New setups

      • APL - 11.76 (break of downtrend line)
      • HGSI - 28.30 (break of downtrend line)
      • HOLX - 16.56 (breakout from tight hourly range)

        - Previous setups
      • PODD - 14.30 (break of downtrend line)
      • MNKD - 9.76 (early entry) & 11.18 (breakout from handle portion of a cup and handle pattern)

        - Triggered
      • PRX - 26.78 - (downtrend line breakout)(triggered 2/2)

        SHORT WATCHLIST AND TRIGGER PRICES

        - New setups
      • WYNN - 62.99

        - Previous setups



        - Triggered



    Daily Stalk Summary

    Below is an overview of all "full-serve" open positions, as well as a performance report on all "full-serve" positions that were closed only since the previous day's newsletter. Net P/L figures are based on the $100,000 Stalk Sheet model account size. Changes to open positions since the previous report are listed in red text below. Please review the MTG Stalk Sheet Subscriber Guide for important, automatic rules on opening gaps and stop prices:

      Open positions (coming into today):

        MMR long (300 shares from Feb. 2) -
        bought 16.08, stop 15.20, target (will send alert), unrealized points = + 0.33, unrealized P/L = + $189

        GMCR long (50 shares from Jan. 29) -
        bought 85.01, stop 84.66, target (will send alert), unrealized points = + 0.74, unrealized P/L = + $36

        CRM long (150 shares from Feb. 3) -
        bought 65.72, stop 63.89, target (will send alert), unrealized points = (0.10), unrealized P/L = ($16)

      Closed positions (since last report):

        (none)

      Current equity exposure ($200,000 max. buying power):

        $19,147


      Notes:

      • CRM long triggered.
      • Per intraday alert, we raised the stop in GMCR to below yesterday's low.
      • Be sure to check for earnings before making any trades over the next few weeks.


      Market Conditions / Gameplan:

      Markets are deeply oversold, so we should see some sort of relief bounce this week.


      Market Leaders:

      Monitoring the price action of leading stocks is the best way to gauge the health of the market (when the market is trending higher). Keep a watchlist of these symbols up at all times and review the price action every night after the close. This list of leaders is updated every Monday.

        Current / Potential Leadership

        GILD GENZ UTHR MNKD NKTR JAZZ MMR TRGL VCI TII ALGN




      Open Position Detail:

      • GMCR - Still holding a half position. Our tight stop keeps the loss to a small scratch if triggered.
      • MMR - Broke out above range. Looking for a pop to the 18.00 - 20.00 range.
      • CRM - Triggered early and consolidated in a tight range the rest of the session.

      Have you had a complimentary trial to Morpheus Trading Group's other newsletter services?

        Edited by Deron Wagner,
        MTG Founder and Head Trader

        DISCLAIMER: There is a risk for substantial losses trading securities and commodities. This material is for information purposes only and should not be construed as an offer or solicitation of an offer to buy or sell any securities. The Company and/or its affiliates, officers, directors and employees may or may not buy, sell or have a position in the securities discussed in The MTG Stalk Sheet and may profit in the event the shares of the companies discussed in The MTG Stalk Sheet rise or fall in value. Morpheus Trading, LLC (hereinafter "The Company") is not a licensed broker, broker-dealer, market maker, investment banker, investment advisor, analyst or underwriter. This discussion contains forward-looking statements that involve risks and uncertainties. A stock's actual results could differ materially from descriptions given. The companies discussed in this report have not approved any statements made by The Company. Please consult a broker or financial planner before purchasing or selling any securities discussed in The MTG Stalk Sheet. The Company has not been compensated by any of the companies listed herein, or by their affiliates, agents, officers or employees for the preparation and distribution of any materials in The MTG Stalk Sheet. Past performance never guarantees future results.

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