The MTG Stalk Sheet
April 7, 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


V - Visa

  • Industry - Consumer Financial Services
  • Side - Long
  • Shares - 200
  • Stalking since - April 7
  • Timeframe - 5 - 20 days
  • Trigger - 65.26
  • Target - new highs (will trail stop)
  • Stop - 63.19
  • Notes -
      • V is a recent IPO with strong earnings and revenue growth.
      • The hourly chart above shows V pulling back in a tight range to the 20-period EMA.
      • We are looking to establish a low risk entry on the hourly chart, as V has great potential to explode higher over the next few months.
      • Our buy entry is over Friday's tight consolidation above 65.00
      • The stop is placed beneath Friday's low minus some wiggle room.
      • Trade expectations - Look fo V to clear 65 with heavy volume. We may look to add to our position if/when it breaks above the high of 4/7.
    "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 pullback in a strong uptrend, example - Walmart (WMT) pullback from 3/25 to 3/28)

    • will list as setups develop

      Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)

    • V - 65.26 & 66.41
    • ITRI - 98.76
    • CRK - 41.33
    • MOS - 116.11
    • SID - 40.13
    • CHD - 57.85
    • SII - 71.15
    • ICE - 151.11
    • UPL - 79.51
    • FMX - 44.12
    • STT - 85.31
    • AG - 66.35
    • QMAR - 24.26 (break of downtrend)
    • BEN - 105.51 (break of downtrend)

      SHORT WATCHLIST AND TRIGGER PRICES (stocks consolidating at/near their 52-week lows in a tight range)

    • PTRY - 21.97
    • DLX - 19.09
    • FFIV - 17.89
    • FMD - 7.29
    • AET - 41.42


    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 58.74, target new highs (will trail stop), unrealized points = + 4.24, unrealized P/L = + $846

        FLR long (125 shares from April 1) - bought 146.55, stop 146.55, target new highs (will trail stop), unrealized points = + 6.34, unrealized P/L = + $791

        RRC long (250 shares from April 2) - bought 65.16, stop 62.94, target new highs (will trail stop), unrealized points = + 1.79, unrealized P/L = + $445

        ISRG long (50 shares from Arpil 1) - bought 332.35, stop 326.89, target new highs (will trail stop), unrealized points = +6.09, unrealized P/L = + $304

        ITRI long (100 shares from April 2) - bought 96.30, stop 91.22, target (new highs), unrealized points = + 1.74, unrealized P/L = + $173

        BRKR long (350 shares from March 26) - bought 16.04, stop 14.69, target (new highs), unrealized points = (0.54), unrealized P/L = ($193)

      Closed positions (since last report):

        (none)

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

        $80,356


      Notes:

      • none


      Market Conditions / Gameplan:

    • The market continues to digest recent gains in a very tight range on light volume. This is a bullish correction that implies higher prices to come. We are looking to establish new long positions in stocks breaking out or pulling back from new highs.



      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 - AKS ANR APA CLF CMP FDG FST GGB GILD HP ILMN LNN MEE PDC SCHN SIAL SQM SYT WFT WLT X XEC

          Strong stocks at/near the 50-day MA (a key institutional support level) - AEM BMRN GG PAAS

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


        Notes on leaders:

      • This rally is just starting out, but so far we like the action. Leading stocks are breaking out to new highs and new chart patterns/setups are emerging.

      Open Position Detail:

      • SIAL - Consolidating at the highs. No change in stop.
      • BRKR - Holding above the 20-day EMA, still range bound. No change in stop.
      • ISRG - Held support of the breakout pivot. No change in stop.
      • FLR - May begin to consolidate in a tight range. We moved our stop to breakeven. We are trailing a loose stop, trying to give this setup plenty of room to breathe.
      • ITRI - Chopping around in a tight range. No change in stop.
      • RRC - Broke above range and should push higher during the week. 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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