The MTG Stalk Sheet
March 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


MT - ArcelorMittal

  • Industry - Iron & Steel
  • Side - Long
  • Shares - 125
  • Stalking since - March 19
  • Timeframe - 5 - 20 days
  • Trigger - 80.33
  • Target - new highs (will trail stop)
  • Stop - 75.19
  • Notes -
      • MT has formed a tight trading range near the highs over the past few weeks.
      • The range sits just a few points off the highs of last October.
      • MT is part of the Steel and Iron group, which is showing great relative strength versus the market with charts like MTL, STLD, AKS, and NUE.
      • Our buy entry is over the highs of the current range.
      • We are going with a fairly loose stop that is well over 5% below our entry to give the setup proper wiggle room. We typically place stops only 1-2 points below a breakout (Darvas stye). However, the current market volatility makes it tough to place tight stops.
      • Trade expectations - We are looking for a heavy volume breakout above the highs of the current range. We would expect a move to new highs within the next week or two. We will trail a very loose stop as long as the price and volume action holds up.
    "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)

      There are virtually no pullback swing setups, as the market has been chopping around or trending lower since the beginning of February. Stocks that make this list are showing a great deal of relative strength.

    • XTO - 61.76 (triggered 3/18)

      Breakout entries (typically trigger over a tight trading range)

    • APC - 66.70
    • DNR - 33.12
    • APA - 120.70
    • MT - 80.35
    • MTL - 143.01
    • AKS - 56.40
    • CALM - 36.65

      SHORT WATCHLIST AND TRIGGER PRICES

    • EBAY - 25.19 (triggered 3/17)
    • LRCX - 37.19 (triggered 3/17)
    • FO - 62.74 (gapped down below entry)
    • NETL - 20.80 (triggered 3/17)
    • WYN - 19.80 (triggered 3/17)
    • MOT - 9.43 (gapped down below entry)
    • IMA - 28.40 (triggered 3/17)
    • ODP - 10.69 (triggered 3/17)


    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):

        SIAL long (200 shares from March 13) - bought 57.49, stop 54.39, target new high (will trail stop), unrealized points = (0.01), unrealized P/L = ($4)

      Closed positions (since last report):

        (none)

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

        $11,496


      Notes:

      • Per intraday email alert, we bought the heavy volume breakout in SIAL.


      Market Conditions / Gameplan:

    • The NYSE advancing volume was more than 94% of the total volume yesterday. This is the second time in just two weeks that we have seen this number rise above 90%. When there are two or more readings of over 90% the odds favor the market moving significantly higher over the next few months. We are now looking for stocks breaking out to new highs on heavy volume for confirmation of an intermediate term market bottom.


      Market Leaders:

        Monitoring the price action of leading stocks is the best way to gauge the health of the market (when the market is trending higher). This list of leaders is updated every Monday.

          Leaders - ABX AEM AKS APA APC BUCY BVN CALM CF CHK CMP COG DBA DBC DVN EAC ECA EOG EQT FCN FDG GDX GG GLD GOLD HP KWK MOS MTL NUE PAAS POT RRC SGY SLV STLD STR SYT UPL USO WLL WLT XEC XTO

          Leaders at/near the 50-day MA (a key institutional support level) - ACI AGU CF EWZ FCL MOS MUR OMG RIG RIO

          Leading stocks breaking the 50-day MA (last week) - CNX, SPW, TNE


        Notes on leaders:

      • Steel and iron stocks are showing incredible relative strength and could certainly lead the market higher if/when it bottoms.

      Open Position Detail:

      • SIAL - Triggered a long entry with a high volume breakout. 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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