The MTG Stalk Sheet
January 18, 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

We continue to lay low while the broad market is in self-destruct mode. We had a great run last year, and while January has been challenging thus far, we are only down 1% versus 9% for the S&P (as of Thursday's close). 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

ABX - 48.15
BVN - 63.01
---------------------------------
BMRN - 38.87 (triggered 1/17)
CPHD - 31.86 (triggered 1/17)
IVGN - 95.65 (triggered 1/17)
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
CRDN - 43.89
KSU - 30.89 (triggered 1/17)
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 = + $288

Closed positions (since last report):

net P/L = ($174)

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

$23,919

Notes:

If our breakeven stop in GENZ triggers within the first 5-minutes of trading, we will wait for the 5-minute low minus 10 cents as the new stop price.
Per intraday email alert, we bought and sold ABX for a small loss, as it failed to hold the gap up.

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

Bitoechs (GENZ & IVGN) and Schools (DV & APOL) are showing great relative strength. Fertilizer stocks are under heavy distribution.

Open Position Detail:

GENZ - Impressive price action during market sell-off. If our stop is triggered within the first 5-minutes of trading, we plan to use the 5-minute low minus 10 cents as the new 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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