The MTG Stalk Sheet
April 18, 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




MTL - Mechel

  • Industry - Iron & Steel
  • Side - Long
  • Shares - 125
  • Stalking since - April 18
  • Timeframe - 10 - 40 days
  • Trigger - 152.20
  • Target - 20% move & more
  • Stop - 148.85
  • Notes -
      • MTL is one of the strongest stocks in the market over the past year. It is a leading stock in one of the best performing groups this year (Iron & Steel).
      • Found support off the 50-day MA at the end of March.
      • Great pick up in volume on the move to new highs on 4/9 & 4/10.
      • The recent price action has tightened up, forming a bull flag pattern at the highs.
      • The buy entry is over the highs of the flag.
      • The stop is placed a little over 3 points beneath our entry (Darvas style).
      • Trade expectations - We are looking for a longer term hold out of MTL. We are expecting at the very least a 15-20% move over the next few weeks. This stock trades pretty fast, so make sure to be on top of the action when it breaks out.
    "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

    • NUE - pullback to 73.50 or breakout above 75.00
      ---------------------------
    • 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)
    • CSX - pullback to yesterday's low (around 59.00) (triggered 4/17)

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

      New setups

    • MTL - 152.20
    • DBA - 40.01
    • GOLD - 55.01
    • BVN - 75.20
      -------------------------------------
    • RIMM - 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):

        RIO long (200 shares from April 15) - bought 35.98, stop 36.19, target new highs (will trail stop), unrealized points = + 2.00, unrealized P/L = + $398

        RIMM long (100 shares from April 17) - bought 119.22, stop 116.39, target new highs (will trail stop), unrealized points = (0.59), unrealized P/L = ($60)

      Closed positions (since last report):

        RRC long (250 shares from April 2) - bought 65.16, sold 69.24 points = + 4.04, net P/L = + $1,008

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

        $19,459


      Notes:

      • Per intraday email alert, RRC hit our trailing stop and we are out with a solid $1,000 gain.
      • Per intraday email alert, we bought RIMM on a pullback to support of the downtrend line. We will look to add to our position in RIMM above 124 if the price and volume action confirms (will send an alert).


      Market Conditions / Gameplan:

    • Broad market indices chopped around on light volume which is to be expected after such a large run up the day before. The rally seems to be in good shape, with strong leadership and quality breakout action. We are looking to establish new long positions in stocks pulling back to support or breaking out on heavy volume.



      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:

      • RIO - Chopped around all session in a tight range. We are trailing a little better than breakeven stop.
      • RIMM - Held up well at support from the 20-period MA on the 60-minute chart. 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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