The MTG Stalk Sheet
April 17, 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




RIMM - Research In Motion

  • Industry - Communications Equipment
  • Side - Long
  • Shares - 100
  • Stalking since - April 17
  • Timeframe - 5 - 20 days
  • Trigger - 121.01
  • Target - move to new highs
  • Stop - 116.44
  • Notes -
      • Back out the chart above and you will see that RIMM is forming the handle portion of a cup and handle pattern.
      • The volume in the handle has dried up nicely and is well below average.
      • Found support off the 20-day EMA on 4/14 & 4/15.
      • The buy entry is over the downtrend line of the pullback and yesterday's high.
      • The stop is placed 1 point beneath yesterday's low. We may decide to cut sooner if the volume doesn't confirm the price action over 121.
      • Trade expectations - We are looking for a longer term hold out of RIMM (at least one month) if the price and volume action holds up. We may add to the position if/when it breaks above the high of the handle (124.03) on heavy volume.
    "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)

      New setups

    • RDC - 42.63
    • CSX - pullback to yesterday's low (around 59.00)
      ---------------------------
    • GGB - 35.85 (gapped above entry)
    • SWC - 17.11 (triggered 4/16)
    • CAT - 77.01 (triggered 4/16)
    • MDR - 58.20 (gapped above entry)
    • RIO - 35.81 (triggered 4/15)
    • PQ - 18.60 (triggered 4/14)
    • BZP - 18.51 (triggered 4/14)
    • DE - 86.55 (triggered 4/15)
    • MT - 84.15 (gapped above entry and pulled back on 4/15)

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

      New setups

    • RIMM - 121.00 & 124.15
      -------------------------------------
    • GOLD - 53.15 (gapped above entry)
    • MON - 125.51 (triggered 4/16)
    • CSX - 59.01 (triggered 4/16)
    • ANR - 48.71 (triggered 4/16)
    • FSLR - 291.00 (gapped above entry)
    • SID - 41.38 (triggered 4/16)
    • UPL - 82.60 (triggered 4/14)
    • PVA - 49.13 (triggered 4/14)
    • JRCC - 20.70 (triggered 4/14)
    • EOG - 130.01 (triggered 4/15)
    • XOM - 90.26 (triggered 4/15)

    • Note: Check earnings before entering new positions over the next few weeks.

      SHORT WATCHLIST AND TRIGGER PRICES

    • DLX - 19.09
    • MVSN - 13.34
    • DF - 20.08
    • XL - 29.74 (triggered 4/14)
    • CMA - 34.16 (triggered 4/14)
    • BPFH - 9.99 (triggered 4/14)


    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):

        RRC long (250 shares from April 2) - bought 65.16, stop 67.49, target new highs (will trail stop), unrealized points = + 5.13, unrealized P/L = + $1,280

        RIO long (200 shares from April 15) - bought 35.98, stop 33.19, target new highs (will trail stop), unrealized points = + 1.90, unrealized P/L = + $378

      Closed positions (since last report):

        DECK short (100 shares from April 15) - sold short 107.13, cover 109.84 points = (2.73), net P/L = ($273)

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

        $25,159


      Notes:

      • Most of yesterday's strong breakouts (that we were stalking) are scheduled to report earnings early to mid-next week. It was tough to watch some of these setups go but our policy is to avoid buying stocks within a week of earnings, as these trades can be very difficult to manage (especially when they are not "in the money" right out of the gate).
      • DECK buy stop triggered.


      Market Conditions / Gameplan:

    • Yesterday's price action was very convincing, as the market looks to be in good shape with leading stocks soaring higher. We could see some very choppy action next week as we enter the meat of earnings season.



      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 - AEM AKS ANR APA BZP CF CLF CMP COG CSX FDG GGB HAL JRCC MOS POT PXP SID SWN UPL X XEC

          Strong stocks at/near the 50-day MA (a key institutional support level) - BLK, DNA, PCLN, ITRI, DE, BZP, ODFL, AG, HES, ABV

          Leading stocks breaking the 50-day (last week) - BCR, STT


        Notes on leaders:

      • We are concentrating on selecting stocks that are in the top 10 to 20 performing industry groups. This is where all the action is and that's where we want to be.

      Open Position Detail:

      • RRC - We raised our stop just beneath the two day low to preserve profits heading into earnings on 4/24.
      • RIO - Gapped up and ran with the market on higher volume. The stop has been raised (see above), as we really don't want to sit through a pullback with earnings due out on 5/1.


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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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