The MTG Stalk Sheet
February 19, 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

PRGO - Perrigo

  • Industry - Biotechnology & Drugs
  • Side - Long
  • Shares - 325
  • Stalking since - February 19
  • Timeframe - 5 - 20 days
  • Trigger - 35.40
  • Target - new highs (will trail stop)
  • Stop - 34.18
  • Notes -
      • PRGO rallied off the lows of January to the prior high of December, gaining around 20%.
      • The action on the move up was impulsive with four gap ups in a row (from 2/1 to 2/6).
      • Note the big volume on 2/5 as PRGO reclaimed the 50-day MA.
      • Has pulled back in a tight range on declining volume.
      • The buy entry is over the downtrend line of the pullback.
      • The stop is placed beneath the low of 2/15 minus some wiggle room.
      • Trade expectations - Look for PRGO to close above 36 to resume uptrend. We should see a move to new highs within the next week or two.
    "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 - (2-5 day pullbacks)

    • PRGO - 35.40
    • XTO - 55.70
    • EOG - 99.11
    • ELN - 25.62
    • FMX - 41.16

      Breakout entries (trigger over a range of tight action)

    • BMRN - 41.15
    • AKS - 48.88
    • ISRG - 316.00
    • MTL - 114.20
    • OI - 56.65
    • DVN - 95.15
    • CF - 120.16
    • HES - 93.61
    • PBR - 118.75
    • FSLR - 237.00

      SHORT WATCHLIST AND TRIGGER PRICES

    • AIG - 44.39
    • DBD - 24.34
    • FNM - 28.94
    • BEE - 14.49
    • SHO - 15.89
    • SLM - 19.85

      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):

        AKS long (150 shares from Feb. 8) -
        bought 45.12, stop 42.69, target (breakout above 49.00), unrealized points = + 1.03, unrealized P/L = + $153

        OI long (175 shares from Feb. 11) -
        bought 54.18, stop 52.36, target new highs, unrealized points = + 0.59, unrealized P/L = + $102

        WB short (225 shares from Feb. 14) -
        sold short 33.65, stop 35.31, target new highs, unrealized points = (0.11), unrealized P/L = ($27)

      Closed positions (since last report):

        VNO long (125 shares from Feb. 13) -
        bought 88.26, sold 85.39, points = (2.87), net P/L = ($361)

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

        $24,103


      Notes:

      • The open buy oder for BMRN has been cancelled due to earnings next Tuesday. The setup still looks great for those who want to play it for quick momentum pop into earnings. As soon as the momentum dries up exit the position. Do not hold through any pullback when earnings are just around the corner.


      Market Conditions / Gameplan:

      We saw some bullish reversal action in broad market indices on Friday. Whether or not they can follow through on the closing momentum remains to be seen. The encouraging new is that our scans turned up many quality long setups over the weekend.


      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, BMRN, CF, CLF, CNX, DBA, DBC, DVN, EOG, FCL, FSLR, ISRG, MA, MEE, MOS, MTL, OI, PBR, POT, PRGO, RRRC, SID, SLV, SPW, WLT,

          Leaders at/near the 50-day MA (a key institutional support level) - AG, AGU, ATW, FCL, FCX, FSLR, FWLT, HES, ISRG, MICC, NBL, OXY, PCU, RIO, VIP

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

        Notes on leaders:

      • The number of bullish chart patterns have increased over the past two weeks.

      Open Position Detail:

      • AKS - Held up well versus yesterdays selloff. No change in stop.
      • OI - Holding in tight range. No change in stop.
      • WB - No follow through to the downside/ reversed w/ the market. We plan to trail a tight stop over the 20-minute high if WB opens strong (will send email alert to confirm new 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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      All Rights Reserved



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