The MTG Stalk Sheet
January 4, 2008

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



RIMM - Research In Motion

  • Industry - Communications Equipment
  • Side - Long
  • Shares - 100
  • Stalking since - January 4
  • Timeframe - 5 - 20 days
  • Trigger - 114.51
  • Target - new highs
  • Stop - 111.94
  • Notes -
      • RIMM gapped up off the lows from a strong earnings report on 12/21.
      • Has been drifting down in a tight range on light volume.
      • Pulled back to support of the 20-day EMA and the 50-day MA.
      • We are using the hourly chart above to define our entry and exit.
      • The buy entry is: 1) over downtrend line of the pullback. 2) Above the tight ranged hourly consolidation. 3) Above the 60 minute 20-period EMA.
      • The stop is placed just beneath the lows of the same range, minus some wiggle room. RIMM has made a higher low on the hourly chart, so once the setup triggers, we do not want to see this low violated.
      • Trade expectations - We are taking an aggressive early entry with reduced share size and risk. We are looking for a move to 120-121 at least. If the price and volume action remains strong, we could carry the position through a breakout above 122.
    "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

      Pullback entries - (changes to trigger prices are highlighted in red)

      New setups

    • RIMM - 114.55
      -----------------------------
    • MTL - 100.11
    • CEDC - 59.11
    • DO - 140.76
    • ILMN - 60.15
    • GOOG - 690.00 (over hourly downtrend line) & 716.26
    • WFR - 91.26 (triggered 12/31) - possible re-entry at 89.30
    • VMW - 85.52 (triggered 1/2)
    • HOLX - 69.85 (triggered 1/2)
    • MA - 218.00 (triggered 1/2)
    • FWLT - 158.01 (triggered 1/2)
    • TRA - 49.01 (triggered 1/3)
    • ABV - 74.01 (triggered 1/3)
    • CF - 112.26 (triggered 1/3)
    • DV - 52.26 (triggered 1/3)

      Breakout entries -

      New setups

    • ONXX - 59.70
      -----------------------------
    • STLD - 58.85
    • NBL - 80.51 (early entry) & 80.85 (breakout)- (early entry triggered 1/3)
    • SWN - 57.12 (56.36 entry triggered 12/31)
    • WFT - 70.51 (triggered 1/2)
    • VIP - 45.60 (43.01 early entry triggered)
    • UPL - 72.51 (triggered 1/2) - look for second entry at 72.70
    • EOG - 91.76 (triggered 1/2)
    • APA - 109.43 (triggered 1/2)
    • ATW - 103.81 (triggered 1/3)
    • POT - 148.76 (triggered 1/3)
    • OXY - 79.51 (triggered 1/3)
    • MDR - 60.81 (triggered 1/3)
    • SID - 90.68 (triggered 1/3)

      SHORT WATCHLIST AND TRIGGER PRICES

    • STJ - 40.74 (triggered 12/31)
    • BA - 87.33 (triggered 12/31)
    • JWN - 35.39 (triggered 1/2)
    • ATI - 86.24 (triggered 12/31)
    • HAR - 72.74 (triggered 1/2)


    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:

      Open positions (coming into today):

        UTHR long (100 shares from Jan. 3) -
        bought 100.58, stop 97.55, target new highs, unrealized points = + 2.37, unrealized P/L = + $236

        UPL long (125 shares from Dec. 28) -
        bought 69.91, stop 66.79, target new highs, unrealized points = + 1.54, unrealized P/L = + $191

        ONXX long (100 shares from Jan. 3) -
        bought 58.32, stop 56.19, target new highs, unrealized points = (0.34), unrealized P/L = ($35)

        DRYS long (100 shares from Jan. 3) -
        bought 80.09, stop 76.62, target 93.00, unrealized points = (0.52), unrealized P/L = ($53)

        SID long (125 shares from Jan. 3) -
        bought 90.70, stop 86.94, target new highs, unrealized points = (0.45), unrealized P/L = ($58)

      Closed positions (since last report):

        (none)

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

        $44,263


      Notes:

      • We were quite busy yesterday, so here is a quick recap.
      • SID long triggered.
      • Per intraday e-mail alert:
        • Bought UTHR over the hourly downtrend line.
        • Bought DRYS over the hourly downtrend line.
        • Bought ONXX on a pullback after an explosive morning move.
        • Our buy stop in RIMM at 114.35 did not trigger (the new setup is detailed above).
        • Cancelled the CF trade due to the large gap up (most of the time we prefer to buy bullish gap ups right away rather than wait for an entry after 20-minutes, however, this one got away from us).


        Market Conditions / Gameplan:

        Best acting groups are oil & gas drilling and exploration, gold, and agri-chemicals. We still see many quality long setups in strong groups. The best way to outperform the market (when its in a long term uptrend) is to look for quality long setups after a broad market sell-off.


        Market Leaders:

          Monitoring the price action of leading stocks is the best way to gauge the health of the market. This list of leaders is updated every Monday.

            Leaders - BMRN, MOS, HES, VIP, OSIP, APC, FSLR, STP, SPWR, DE, MA, DO, ESRX, MON, MTL, DECK, RIG, ACI, CF, POT, ATW

            Leaders at/near the 50-day MA (a key institutional support level) - GOOG, GRMN, CHL, RIMM, FTI, FCX, EDU, NOK, GLDN, SOHU, DV

            Leading stocks breaking the 50-day MA - SIGM,

          Notes on leaders:

        • Keep an eye on RIMM at the 50-day MA.

        Open Position Detail:

        • UPL - Consolidating near the highs of the range. No change in stop.
        • UTHR - We are in good shape with UTHR, as it should test the prior highs around 109-110.
        • DRYS - We are looking for a pop in price to the 90-93 level.
        • ONXX - If ONNX can break above 60, then we may see an explosive move to new highs next week.
        • SID - Look for a follow through to new highs today.


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        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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