The MTG Stalk Sheet
February 12, 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, however; we are monitoring CTXS for a potential cup and handle breakout. Yesterday's session was productive, as we are beginning to see a pick up in action from relative strength stocks. If the broad market averages can hold the recent swing low, then we expect to see the best breakout candidates emerge over the next two to three weeks. As always, we will promptly send an intraday alert if anything catches our eye while scanning.




OSK - Oshkosh Corporation

  • Industry - Auto & Truck Manufacturers
  • Side - Long
  • Shares - 150
  • Stalking since - Feb. 11
  • Timeframe - 5 - 20 days
  • Trigger - 39.82
  • Target - (will send alert)
  • Stop - 37.49
  • Notes -
      • OSK has shown great relative strength during the market correction.
      • Since reclaiming the 50-day MA in early February, the action has tightened up nicely.
      • The buy entry is over the downtrend line and yesterday's high.
      • The stop is below the 20-day & 50-day MA's.
      • Trade expectations - Depending on broad market action, OSK has the potential to run 20% to 40% higher over the next few months. If the market fails to hold up, we'll look to take profits around 10% to 15%.
    "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

      • ALGN - 17.80 (light volume pullback after false breakout)

        - Previous setups



        - Triggered
      • UTHR - 57.40 (move out after pullback to 20-day EMA)(reports 2/18) (triggered 2/8)
      • BIIB - 53.71 (holding support from lows of range) (triggered 2/9)
      • DAL - 11.65 (pullback to 50-day MA)(triggered 2/9)
      • MMR - 15.50 (holding support of 20-day EMA)(triggered 2/9)
      • RVBD - 24.15 (low volume pullback)(triggered 2/11)
      • BA - 60.16 (move out from support of 20-day EMA)(triggered 2/11)
      • F - 11.17 (move out from support of 20-day EMA)(triggered 2/11)
      • NEP - 9.15 (downtrend line breakout if it can hold above 9.00)(triggered 2/11)
      • AAPL - 198.11 (over two-day high)(triggered 2/11)
      • CREE - 58.05 (early entry on potential downtrend line breakout)(triggered 2/11)


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

        - New setups

      • LYV - 11.80 (break of short-term downtrend)
      • CTXS - 43.51 & 44.12 (cup and handle breakout)
      • CAGC - 17.66 (breakout from tight two-day range)

        - Previous setups



        - Triggered
      • MJN - 46.63 (breakout from tight range)(triggered 2/9)
      • MR - 36.10 (break of downtrend line) (triggered 2/9)
      • PRGO - 46.35 (early entry on potential bull flag breakout)(triggered 2/11)
      • NETL - 49.20 (breakout above three-day high)(triggered 2/11)
      • IPXL - 13.85 (break of downtend line)(triggered 2/11)

        SHORT WATCHLIST AND TRIGGER PRICES

        - New setups
      • TM - 74.85 (light volume bounce, 70.00 target)
      • RL - 77.54 (high volume breakdown below 50-day MA, 74.00 target)

        - 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. 10) -
        bought 15.71, stop 150 @ 14.85 & 150 @ 13.94, target (will send alert), unrealized points = + 0.53, unrealized P/L = + $156

        GMCR long (125 shares from Feb. 9) -
        bought 82.41, stop 79.68, target (will send alert), unrealized points = + 0.61, unrealized P/L = + $75

        ATHR long (150 shares from Feb. 11) -
        bought 33.66, stop 31.4, target (will send alert), unrealized points = + 0.36, unrealized P/L = + $53

      Closed positions (since last report):

        (none)

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

        $20,353


      Notes:

      • Per intraday alert, we bought ATHR on a move back above the 50-day MA.
      • Be sure to check for earnings before making any trades over the next few weeks.


      Market Conditions / Gameplan:

      We are beginning to see more bullish setups from our scans. We may grab a few longs with reduced size for now, but we'll need to see confirmation of a bottom from the broad market averages before we get heavily long.


      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

        UTHR NKTR MMR TII ALGN BEXP GMCR BIDU BIIB RIMM




      Open Position Detail:

      • GMCR - Leading stock has the potential to move 30-50% higher over the next few weeks... if the market holds up.
      • MMR - Top relative strength stock in energy sector with potential to double over the next few months.
      • ATHR - Needs to hold above the 50-day MA.

      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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