The MTG Stalk Sheet
January 14, 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



ILMN - Illumina

  • Industry - Biotechnology & Drugs
  • Side - Long
  • Shares - 150
  • Stalking since - January 14
  • Timeframe - 3 - 10 days
  • Trigger - 71.30
  • Target - new highs (will trail stop)
  • Stop - 68.89
  • Notes -
      • ILMN gapped to new highs on huge volume.
      • Pulled back to test the prior days low on light volume (check out the 15-minute chart above).
      • ILMN is a biotech stock, which have been showing great relative strength.
      • Our buy entry is a move off the lows of Friday.
      • The stop is placed about 50 cents below the two day low.
      • Trade expectations - Look for IVGN to test the highs of the range and possibly break out to new highs during the week.
    "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 -

    • DRQ - 60.35
    • MEE - 33.90
    • ISRG - 271.00
    • ONXX - 55.01
    • UNR - 29.65
    • UTHR - 100.26
    • SPN - 44.55
    • TOT - 85.01

      Breakout entries - Higher failure rate in weak markets

    • APOL - 81.26
    • GG - 39.11
    • FPL - 72.80
    • LLY - 57.27

      SHORT WATCHLIST AND TRIGGER PRICES

    • TRN - 24.39
    • GS - 194.24
    • TEX - 52.30
    • LEH - 56.24


    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):

        (flat)

      Closed positions (since last report):

        (none)

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

        $0


      Notes:

      • none


      Market Conditions / Gameplan:

      Though the markets have bounced higher over the past two sessions, the move has been pretty weak considering how much we sold off. The deeply oversold conditions make it tough to find quality short setups with strong risk/reward ratios. Gold, bitoechs, medical instruments, and drugs look to be the safest bets long.


      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 - ABX, ADM, AEM, AGU, BG, BMRN, BVN, CF, CMED, COG, CPHD, GG, HUM, ILMN, JASO, KWK, MOS, PBR, POT, PPDI, RRC, SPN, SWN, TRA, VIP

          Leaders at/near the 50-day MA (a key institutional support level) - AGU, APA, EDU, EOG, DRQ, FSLR, LIFC, ONXX, OSIP, OXY, SIAL, UTHR

          Leading stocks breaking the 50-day MA (last week) - ALXN, CBI, CRM, FWLT, MA, OSIP, SPWR

        Notes on leaders:

      • We are seeing new leaders emerge from gold and biotechs

      Open Position Detail:

      • flat


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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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