The MTG Stalk Sheet
January 17, 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

There are no new setups pre-market. Yesterday morning's sharp broad market reversal off the lows was a good sign for the bulls. However, the lack of follow through in the afternoon and the sell off into the close was disappointing action. With the market at deeply oversold levels, there are very few short setups remaining with solid risk/reward ratios. There is also very little enthusiasm for longs, as bullish chart patterns have failed shortly after triggering over the past week. If anything catches our eye while scanning, we will promptly send an e-mail alert.

"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

BMRN - 38.87
CPHD - 31.86
KGC - 22.40
---------------------------------
IVGN - 95.65
TOT - 85.01 (gapped open above trigger on 1/14)
MEE - 33.90 (triggered 1/14)

Breakout entries - Higher failure rate in weak markets
LLY - 57.27 (triggered 1/14)
GG - 39.11 (gapped open above trigger on 1/14)
APOL - 80.30 (triggered 1/15)

SHORT WATCHLIST AND TRIGGER PRICES

New setups
MDC - 32.74
KSU - 30.89
CRDN - 43.89
----------------------------
NUAN - 15.74 (triggered 1/16)
CLF - 89.37 (triggered 1/16)
TEX - 54.39 (triggered 1/16)
VMC - 69.18 re-entry (triggered 1/16)
LEH - 57.34 (triggered on 1/15)
TRN - 24.39 (triggered on 1/15)

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):

unrealized P/L = ($142)

Closed positions (since last report):

net P/L = + $720

net P/L = + $452

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

$23,919

Notes:

Per intraday email alert, we covered 50 shares of NOV at 67.11, and the remaining 100 shares at 62.48.
Per intraday email alert, we covered CAM at 44.91
We took profits in NOV due to the extreme morning sell-off. The low of the day was only one point above our target of 61, so we decided to lock in a qucik gain of +$700. Since NOV and CAM are closely correlated, we covered both at the same time.
Per intraday email alert, we bought the heavy volume breakout to new highs in GENZ. Biotech stocks are showing great relative strength versus the broad market, and GENZ has one of the strongest charts.

Market Conditions / Gameplan:

Market Leaders

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

Open Position Detail:

GENZ - Should hold above 80. Will trail a tight stop if the action is weak.

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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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