The MTG Stalk Sheet
February 26, 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


ILMN - Illumina

  • Industry - Biotechnology & Drugs
  • Side - Long
  • Shares - 200
  • Stalking since - February 26
  • Timeframe - 5 - 20 days
  • Trigger - 76.35
  • Target - new highs (will trail stop)
  • Stop - 74.94
  • Notes -
      • ILMN broke out to new highs from a five week consolidation.
      • Volume picked up on the move out to new highs.
      • Closed near the highs of the session.
      • Our buy entry is a continuation breakout over the tight range on the 15-minute chart above.
      • The stop is placed beneath the lows of the range.
      • Trade expectations - We are looking for ILMN to follow through on the breakout to new highs where we will trail a loose stop as long as the price and volume action remains strong.

    GOLD - Randgold Resources

  • Industry - Gold
  • Side - Long
  • Shares - 200
  • Stalking since - February 26
  • Timeframe - 5 - 20 days
  • Trigger - 49.76
  • Target - new highs (will trail stop)
  • Stop - 47.94
  • Notes -
      • GOLD is trading near 52-week highs and is one of the strongest charts within the group that has shown relative strength versus the broad market in 2008.
      • Has pulled back in a tight range over the past few sessions.
      • Monday's low undercut the gap up bar of 2/19, shaking out the weak longs.
      • Our entry is over the hourly downtrend line.
      • The stop is placed beneath Monday's low minus some wiggle room.
      • Trade expectations - Look for GOLD to break the downtrend line and close above 50, where it should resume the uptrend over the next few weeks.
    "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)

    • ISRG - 295.05
    • BMRN - 37.51 (triggered 2/25)
    • PRGO - 34.30 (triggered 2/25)
    • STJ - 43.75 (triggered 2/25)

      Breakout entries (trigger over a range of tight action)

      New setups

    • ACI - 55.35
    • CEO - 169.11 (break of downtrend)
    • DRYS - 88.01
    • OXY - 76.90
    • OI - 57.12
      -------------------------
    • PCLN - 129.51
    • AG - 67.05 (triggered 2/25)
    • EOG - 101.15 (triggered 2/25)
    • DE - 88.01 (triggered 2/25)
    • MEE - 42.60 (triggered 2/25)

      SHORT WATCHLIST AND TRIGGER PRICES

    • ROK - 56.15
    • HAR - 40.74
    • LFC - 55.38
    • LDK - 29.84
    • FFIV - 21.55
    • SBUX - 17.60

      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):

        CG short (175 shares from Feb. 22) -
        sold short 74.47, stop 77.01, target 69.25, unrealized points = (1.16), unrealized P/L = ($206)

      Closed positions (since last report):

        MA short (100 shares from Feb. 22) -
        sold short 200.46, cover 199.02, points = + 1.44, net P/L = + $142

        BGC short (150 shares from Feb. 22) -
        sold short 60.85, cover 63.46, points = (2.61), net P/L = ($395)

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

        $14,235


      Notes:

      • BGC short hit our stop.
      • Per intraday email alert, we covered MA due to the bullish reversal on heavy volume. Though it was tough to cut the position into the close, we wanted to avoid a possible gap up and prevent a winning position from turning negative.


      Market Conditions / Gameplan:

      The S&P 500 finally closed above the highs of the tight two week range, followed by the Dow and mid-cap S&P 400. The Naz Composite, Naz 100, and small cap Russell 2000 are lagging and have not yet broken out from their ranges. We look for the S&P 500 to bounce to 1,393 to 1,400 area, where it should find resistance from the prior swing high of 2/1 and the 50-day MA.


      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. Extrmemly choppy conditions still exit.

          Leaders - ACI, AEM, ANR, AUXL, BVN, BMRN, CF, CLF, CHK, CNX, DBA, DBC, DVN, EOG, FCL, FSLR, GOLD, IGT, ISRG, MA, MEE, MOS, MTL, OI, PBR, POT, PRGO, RRC, SID, SLV, SPW, USO, WLT

          Leaders at/near the 50-day MA (a key institutional support level) - AG, BMRN, DE, HES, MA, OXY, PRGO

          Leading stocks breaking the 50-day MA (last week) - FLIR, FSLR, ISRG


        Notes on leaders:

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

      Open Position Detail:

      • CG - Has bounced into resistance at the 76-76.50 level. No change in stop.


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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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      All Rights Reserved



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