The MTG Stalk Sheet
March 28, 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 - Medical-Systems/Equipment
  • Side - Long
  • Shares - 200
  • Stalking since - March 28
  • Timeframe - 5 - 20 days
  • Trigger - 75.11
  • Target - new highs
  • Stop - 72.94
  • Notes -
      • ILMN is consolidating in a tight range near the highs.
      • The 60-minute chart above shows just how tight the past three days have been.
      • The 20-period EMA has caught up to the price action to lend support.
      • Our buy entry is over the downtrend line of the consolidation.
      • The stop is placed beneath the lows of the tight range, minus some wiggle room.
      • Trade expectations - Look for ILMN to breakout to new highs over the next week.


    ITRI - Itron

  • Industry - Communications Equipment
  • Side - Long
  • Shares - 125
  • Stalking since - March 26
  • Timeframe - 5 - 20 days
  • Trigger - 95.51
  • Target - 109.90
  • Stop - 91.49
  • Notes -
      • ITRI is consolidating in a fairly tight range around 15% off the 52-week highs.
      • The 20-day EMA has been providing support over the past few weeks.
      • We dont see any heavy volume distribution during the consolidation.
      • The buy entry is over the downtrend line of the range.
      • The stop is placed beneath the spike low on 3/27.
      • Trade expectations - Look for ITRI to break the downtrend line on a pick up in volume. We are looking for the price action to build momentum and break through 100 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)

      New Setups

    • MA - 224.60
    • NUS - 19.01
    • CHT - 25.81
      -------------------------------
    • ITRI - 95.51
    • ISRG - 302.00 (triggered 3/24)
    • XEC - 51.21 (triggered 3/24)
    • HXM - 57.81 (triggered 3/25)
    • BZP - 20.11 (triggered 3/26)

      Breakout entries (typically trigger over a tight trading range)

    • ANR - 43.60
    • WMS - 40.12
    • CALM - 37.30 (triggered 3/24)
    • CSX - 55.15 (triggered 3/24)
    • CHT - 25.40 (gapped above trigger)
    • GILD - 49.11 (triggered 3/24)
    • URBN - 31.42 (triggered 3/24)
    • ODFL - 31.76 (triggered 3/24)
    • TER - 12.93 (triggered on open)
    • BRKR - 15.92 (triggered 3/25)
    • RRC - 66.03(triggered 3/26)
    • CLF - 121.26 (triggered 3/26)
    • MT - 77.90 & 80.35 (triggered 3/26)
    • CAT - 77.12 (triggered 3/26)

      SHORT WATCHLIST AND TRIGGER PRICES

      New setups

    • GAS - 32.60
    • NST - 29.67
      ----------------------------
    • WLP - 44.64


    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 28) - bought 57.49, stop 57.29, target new highs (will trail stop), unrealized points = + 1.34, unrealized P/L = + $264

        SOHU long (200 shares from March 25) - bought 45.80, stop 42.79, target 52.00, unrealized points = (0.12), unrealized P/L = ($28)

        BRKR long (350 shares from March 26) - bought 16.04, stop 14.69, target (new highs), unrealized points = (0.51), unrealized P/L = ($186)

        ISRG long (75 shares from March 26) - bought 325.28, stop 320.74, target 350.00, unrealized points = (3.42), unrealized P/L = ($258)

        MT long (200 shares from March 26) - bought 80.39, stop 77.94, target (new highs), unrealized points = (1.54), unrealized P/L = ($312)

      Closed positions (since last report):

        STLD long (200 shares from March 20) -
        bought 65.89, sold 66.74, points = + 0.85, net P/L = + $166

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

        $66,247


      Notes:

      • STLD reversed from a gap down and triggered our trailing stop for a small gain.
      • Note the changes to the ITRI setup in red under the full-serve section.
      • Gas and electric utilities (GAS and NST) are showing relative weakness to the S&P 500 and are listed in the self-serve short watchlist section.
      • If the ISRG stop is triggered within the first five minutes of trading then we will wait for the first 5-minute bar to form and place our new stop 20 cents beneath that first 5-minute bar low. ISRG closed near our stop price and opening action is often volatile, so we are using the 5-minute bar low to avoid a shakeout on the open.


      Market Conditions / Gameplan:

    • Broad market indices are attempting to put in an intermediate term bottom. We are looking for confirmation of this through leading stocks breaking out to new highs on big volume.

      Why are we bullish in the short to intemediate term? The sharp reversal in the broad market off the lows, an IBD follow through day, and two 90% up volume days in the NYSE is our bullish evidence. Whether or not this turns into a significant rally is up to the price action of new leading stocks.


      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 - CALM HP RRC USO WLT CLF CMP CSX EOG EXR FCN FDG HLF JOE NFLX NUE PRGO R SHY SIAL SID STLD TIP XEC

          Leaders at/near the 50-day MA (a key institutional support level) - AEM ANR KWK SID HP SWN MTL UNG RRC DVN

          Leading stocks breaking the 50-day (last week) - ACI AGU CF EWZ FCL MOS UPL MUR OMG ACI GLD UPL OXY BVN GG DBA SLV RIO GOLD


        Notes on leaders:

      • Look for natural gas stocks to set up on the long side next week.

      Open Position Detail:

      • SIAL - Broke out from hourly cup and handle pattern. Holding up well.
      • SOHU - Tight three day range. No change in stop.
      • ISRG - Still a strong hourly pattern. No change in stop.
      • MT - False breakout on lighter volume. No change in stop.
      • BRKR - Pulled back to uptrend line. 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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