The MTG Stalk Sheet
February 6, 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



UTHR - United Therapeutics

  • Industry - Biotechnology & Drugs
  • Side - Long
  • Shares - 150
  • Stalking since - February 6
  • Timeframe - 2 - 5 days
  • Trigger - 88.05
  • Target - 93.75
  • Stop - 85.49
  • Notes -
      • UTHR broke the downtrend line of a month long correction on 2/4.
      • Has basically traded in a tight horizontal range over the past eight sessions.
      • The entry is over yesterday's high plus some wiggle room.
      • The stop is placed beneath the low of Tuesday's tight range.
      • Trade expectations - Look for UTHR to confirm the break of the downtrend line by closing above 88. We expect a quick pop in price with a target just below the 50% retracement level of the move down. The mimimum target is the 38% retrace level.
    "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

    • ALXN - 69.32
    • ALNY - 32.15
      -----------------------------
    • HRL - 39.40
    • TEVA - 47.01
    • UTHR - re-entry 88.05 (false triggered at 87.60 on 2/5)
    • MER - 59.35 (triggered 2/4)
    • FXI - 151.51 (gapped above entry)
    • KSS - 45.51 (rolled over after gapping above the entry)
    • HME - 49.55 (triggered 2/4 on weak action)

      Breakout entries -

    • CNX - 77.51
    • APOL - 81.80
    • IMCL - 44.51
    • DBC - 32.76
    • FXE - 149.68
    • NLY - 20.33 (triggered 2/5)

      SHORT WATCHLIST AND TRIGGER PRICES

    • RS - 49.15 (gapped below trigger on 2/5)
    • GOL - 18.99 (triggered 2/5)
    • DRIV - 30.27 (triggered 2/5)
    • CIEN - 25.48 (triggered 2/5)
    • PCLN - 101.99 (triggered 2/5)

      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):

        DE short (125 shares from Feb. 5) -
        sold short 86.41, stop 89.68, target (75.15), unrealized points = + 2.93, unrealized P/L = + $365

      Closed positions (since last report):

        SPWR long (100 shares from Feb. 4) -
        bought 74.98, sold 71.70, points = (3.28), net P/L = ($330)

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

        $10,435


      Notes:

      • Per intraday e-mail alert, we shorted DE on the break of the hourly uptrend line.
      • SPWR sell stop triggered.


      Market Conditions / Gameplan:

      Yesterday morning's monster gap down caused all major averages to break thier hourly uptrend lines. Look for support to step in at the 50% retracement level on the S&P 500 around 1,333.


      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:

      • DE - Broke down below the 50-day MA on a pick up in volume. No change in stop.


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      Please check out the MTG Stalk Sheet Subscriber Guide to learn how to get the most from your subscription.

      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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