The MTG Stalk Sheet
January 15, 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



APOL - Apollo Group

  • Industry - Schools
  • Side - Long
  • Shares - 150
  • Stalking since - January 15
  • Timeframe - 5 - 20 days
  • Trigger - 80.31
  • Target - new highs (will trail stop)
  • Stop - 78.24
  • Notes -
      • On Jan. 9, APOL gapped up off the lows on a strong earnings report.
      • Volume was huge on the gap.
      • Has been consolidating above the 50-day MA the past few days.
      • Our buy entry is over yesterday's high.
      • The stop is placed about 2 points below the breakout entry, which should be enough wiggle room.
      • Trade expectations - Look for APOL to break out to new 52-week highs on strong volume over the next few days. We will trail a loose stop as long as the price and volume action stays healthy.
    "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 -

      New entries

    • IVGN - 96.85
    • ADM - 46.11
    • ATW - 97.51
      --------------------------------------
    • DRQ - 60.35
    • ISRG - 271.00
    • UTHR - 100.26
    • SPN - 44.65
    • TOT - 85.01 (gapped open above trigger on 1/14)
    • MEE - 33.90 (triggered 1/14)

      Breakout entries - Higher failure rate in weak markets

    • APOL - 80.30
    • FPL - 72.21
    • LLY - 57.27 (triggered 1/14)
    • GG - 39.11 (gapped open above trigger on 1/14)

      SHORT WATCHLIST AND TRIGGER PRICES

    • TRN - 24.39
    • TEX - 54.39
    • LEH - 57.34


    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):

        SOHU long (100 shares from Jan. 15) -
        bought 50.96, stop 48.59, target (ride momentum), unrealized points = + 0.40, unrealized P/L = + $39

        STP long (100 shares from Jan. 15) -
        bought 70.30, stop 67.62, target (ride momentum), unrealized points = (0.08), unrealized P/L = ($9)

      Closed positions (since last report):

        STP long (100 shares from Jan. 14) -
        bought 68.80, sold 68.70, points = (0.10), net P/L = ($12)

        ILMN long (150 shares from Jan. 14) -
        bought 71.41, sold 68.89, points = (2.52), net P/L = ($381)

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

        $12,158


      Notes:

      • ILMN entry and stop triggered.
      • Per intraday e-mail alert, we bought and sold STP for a scratch.
      • Per intraday e-mail alert, we re-entered STP at 70.30
      • Per intraday e-mail alert, we bought SOHU on the break of the hourly downtrend line.
      • We cancelled yesterday's buy order for AMZN.


      Market Conditions / Gameplan:

      Markets are struggling to push higher. We are waiting for a bounce off the lows to establish short positions. Most of our long entries right now are short term momentum plays.


      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:

      • SOHU - Broke the hourly downtrend line. No change in stop.
      • STP - Broke the hourly downtrend line, we are looking for some follow through. No change in stop.


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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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