The MTG Stalk Sheet
January 31, 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



NIHD - NII Holdings

  • Industry - Communications Services
  • Side - Short
  • Shares - 150
  • Stalking since - January 31
  • Timeframe - 3 - 15 days
  • Trigger - 41.85
  • Target - new 52-week lows
  • Stop - 44.26
  • Notes -
      • After touching the 50-day MA in mid-January, NIHD sold off 30% on heavy volume.
      • Has bounced into resistance of the prior swing low, retracing 50% of the move down.
      • Weak volume on the bounce up.
      • The short entry is below the uptrend line of the bounce.
      • The stop is placed above resistance of the 10-day MA.
      • Trade expectations - Look fo NIHD to resume downtrend to new 52-week lows.
    "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 setups

    • CNX - 73.82
      ------------------
    • VNO - 92.26 second entry (triggered 1/28 at 90.51)
    • GOLD - 47.51 (gapped open above trigger on 1/30)
    • ONXX - 49.15 (triggered with weak price action on 1/30)
    • UNP - (triggered 1/29 at 121.76)& (triggered 1/30 at 92 122.51)
    • GENZ - 75.51 (triggered 1/29)
    • AVB - 96.15 (triggered 1/29 on weak price and volume action)
    • USO - 72.76 (triggered 1/29)
    • RIMM - 94.01 (false triggered on the open)
    • HD - 29.36 (triggered 1/29)
    • BRE - 42.16 (triggered 1/28)
    • JLL - 67.20 (triggered 1/28)
    • GS - 193.61 (triggered 1/28)

      Breakout entries -

    • CNX - 77.35
    • FCL - 52.85
    • AEM - 64.51 (false breakout on 1/30)

      SHORT WATCHLIST AND TRIGGER PRICES

      New setups


    • ------------------
    • EGLE - 21.09 (triggerd 1/28)
    • GNK - 40.84 (triggerd 1/28)
    • EXM - 30.83 (triggerd 1/28)

      Note - Be sure to check for earnings dates before entering setups from the self-serve list over the next few weeks.


    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):

        ONXX long (125 shares from Jan. 25) -
        bought 48.35, sold 48.95, points = + 0.60, net P/L = + $73

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

        $0


      Notes:

      • Per intraday e-mail alert, we sold ONXX for a scratch.


      Market Conditions / Gameplan:

      The sharp reversal action into the close trapped many longs who have been paitently waiting on the sidelines for a buy signal. Wednesday's false breakout could trigger a selloff that at the very least tests the prior lows of January. We will look to establish short positions over the next few days as the market confirms its weakness.


      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, AEM, BMRN, BVN, DBC, GOLD, GG, GLD, ILMN, PPDI, SLV

          Leaders at/near the 50-day MA (a key institutional support level) - HUM

          Leading stocks breaking the 50-day MA (last week) - ESRX, IVGN, APOL

        Notes on leaders:

      • We are scanning for new leaders. Stocks that are showing relative strength and trading in tight ranges while the market corrects may be the leaders of tomorrow.

      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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