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



OI - Owens-Illinois

• OI is forming a bull flag pattern at new highs.
• Heavy volume gap up to new highs 1/31.
• Has been trading in a tight range past few sessions on lighter volume.
• The long entry is over the high of 2/4.
• The stop is placed fairly tight to guard against a false breakout.
• Trade expectations - Look for OI to thrust to new highs over the next few days.

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SPW - SPX Corporation

Industry - Misc. Capital Goods

Side - Long

Shares - 150

Stalking since - February 11

Timeframe - 3 - 20 days

Trigger - 105.15

Target - new highs (will trail stop)

Stop - 102.94

Notes -

• SPW has formed a double bottom pattern (like AKS) after ripping off the 200-day MA on strong volume in late January.
• The double bottom is formed when the low of 11/27 (around 96) is broken in mid-January.
• This monster shakeout set off a ton of sell stops.
• This type of strong reversal action should lead to new highs if SPW can break above the mid-point of the formation on 12/14 (above 106).
• The early entry is over the highs of the tight range, which will also confirm a break of the downtrend line.
• The stop is tight at two points away, to guard against a false breakout.
• Trade expectations - Look for SPW to break out to new highs over the next two weeks.

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UTHR - United Therapeutics

Industry - Biotechnology & Drugs

Side - Long

Shares - 100

Stalking since - February 6

Timeframe - 2 - 5 days

Trigger - 88.05

Target - 93.75

Stop - 84.24

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 using a 61.8% retrace from our entry of 88 (84.69)
• 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.

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"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 -


• SID - 97.51
• TEVA - 47.01
• LULU - 35.15
• CENX - 55.30
• SPW - 105.15
• OMTR - 28.12
• CHNR - 24.00
  
  Breakout entries -
  
  
• CNX - 78.30
• ISRG - 315.00
• MTL - 101.45
• OI - 53.80
  
  SHORT WATCHLIST AND TRIGGER PRICES
  
  
• MNT - 30.73
• LDK - 29.61
• STP - 44.19
• WEN - 22.19
• SBUX - 17.90
• LRCX - 36.69
• SWY - 30.24
• WY - 61.87
  
  Note - Be sure to check for earnings dates before entering setups from the self-serve list over the next few weeks.
  
  

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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):


AKS long (150 shares from Feb. 8) -
bought 45.12, stop 42.69, target (breakout above 49.00), unrealized points = + 1.10, unrealized P/L = + $164


Closed positions (since last report):


CNX long (150 shares from Fed. 8) -
bought 77.23, sold 76.87, points = (0.36), net P/L = ($57)

CNX long (150 shares from Fed. 8) -
bought 77.32, sold 76.95, points = (0.37), net P/L = ($58)


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


$6,933


Notes:


• AKS long triggered.
• Per intraday e-mail alert, we bought and sold CNX twice for a combined loss of $115. The breakout price and volume action was disappointing. In a weak market we prefer to exit with a small loss rather than hold through the weekend without a significant profit buffer.


Market Conditions / Gameplan:

While it looks as if the market is trying to bottom out at these levels, we would like to see some confirmation, such as a full day of buying with strong price action into the close. Until then, we will keep our exposure to the long side at a minimum.



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 - ACI, AEM, AUXL, BVN, CLF, CNX, DBA, DBC, FCL, MA, MEE, OI, PBR, PRGO, RRRC, SID, SLV, SPW, WLT,

Leaders at/near the 50-day MA (a key institutional support level) - ADM, AGP, PA, BLK, HES, ISRG, LUK, MA, SPW, TEVA

Leading stocks breaking the 50-day MA (last week) - APOL, BG, HUM


Notes on leaders:


• We are seeing more bullish setups emerge in the market.
  
  
Open Position Detail:


• AKS - Strong price action in the first hour of trading, followed by a tight horizontal range. Looking good...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

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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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