The MTG Stalk Sheet
February 4, 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



MER - Merrill Lynch & Co

  • Industry - Brokers
  • Side - Long
  • Shares - 100
  • Stalking since - February 4
  • Timeframe - 3 - 10 days
  • Trigger - 59.35
  • Target - new highs (will trail stop)
  • Stop - 54.94
  • Notes -
      • MER is trading in a tight range above the 20 & 50-day MA's.
      • A close above 60 should confirm the break of the daily downtrend line.
      • The entry is over the highs of the tight range.
      • The stop is placed just below the 50-day MA.
      • Trade expectations - If MER can clear the prior high of 63.00, then we could see a thrust up to the 70 area, around the 200-day MA.


      "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 -

      • MER - 59.35
      • BLUD - 29.86
      • FXI - 151.51
      • MCO - 36.70
      • KSS - 46.51
      • HME - 49.55
      • BSC - 93.30

        Breakout entries -

      • CNX - 77.35
      • APOL - 81.80
      • IMCL - 44.51
      • AEM - 64.51
      • DBC - 32.76
      • FXE - 149.68
      • NLY - 20.33

        SHORT WATCHLIST AND TRIGGER PRICES

      • DRIV - 30.27
      • VMW - 54.89
      • CIEN - 25.48
      • GRMN - 68.35
      • PCLN - 101.99
      • TSL - 33.85

        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):

          VNO long (150 shares from Jan. 31) -
          sold short 88.14, sold 94.20, points = + 6.06, net P/L = + $906

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

          $0


        Notes:

        • Per intraday e-mail alert, we sold VNO into strength to lock in a quick $900 gain in less than two sessions.


        Market Conditions / Gameplan:

        Resilient price action in the market on Friday reversed last Wednesday's ugly Fed reversal bar. The short term momentum is to the upside, however, we expect more short setups to develop during as the market climbs higher.


        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, ACI, ADM, APOL, BMRN, BVN, CNX, DBC, FDG, FCL, FXE, GOLD, GG, GLD, ILMN, PPDI, SID, SLV, WLT

            Leaders at/near the 50-day MA (a key institutional support level) - BYI, DV, IBN, PBR, PPDI, TRA

            Leading stocks breaking the 50-day MA (last week) - none

          Notes on leaders:

        • Coal stocks are showing great relative strength

        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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