The MTG Stalk Sheet
April 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 - 175
  • Stalking since - April 28
  • Timeframe - 5 - 20 days
  • Trigger - 80.01
  • Target - new highs (will trail stop)
  • Stop - 77.84
  • Notes -
      • ILMN gapped up from earnings on 4/23 with big volume and closed at the prior high.
      • Has consolidated in a tight range over the past few days on declining volume.
      • The buy entry is over the hourly downtrend line and the prior high of 4/10.
      • The stop is placed just beneath the two day low minus some wiggle room.
      • Trade expectations - Look for ILMN to close above the prior swing high of 4/10 on big volume. We are expecting a 15-20% move over the next few weeks if the price and volume action agree.
    "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 or pullbacks to the 20 & 50-day MA's)

    • CBD - 43.26 (earnings 5/8)
    • IVGN - 92.51
    • CBD - 44.01
    • SMS - 33.06
    • CNX - 82.01
    • ITRI - pullback to breakout pivot (99.00 - 100.00)
    • ILMN - 80.01

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

    • PRGO - 41.01 (earnings 5/8)
    • FEED - 20.11
    • EMR - 54.12
    • SOL - 19.06
    • UTHR - 89.26
    • NKE - 69.10
    • MELI - 52.86
    • DSX - 31.26
    • NUE - 76.15

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

      SHORT WATCHLIST AND TRIGGER PRICES

    • CMG - short bounce to 50-day MA (from 106.50 - 107.50)
    • BYD - 16.99
    • UNH - 33.28
    • SCHL - 27.84


    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):

        (flat)

      Closed positions (since last report):

        (none)

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

        $0


      Notes:

      • We cancelled the AKS buy entry to be on the safe side, as we did not like the lunchtime trigger combined with a weak morning session in the broad market. The market recovered nicely off the lows, so the AKS setup worked out.


      Market Conditions / Gameplan:

    • We are patiently waiting for stocks to pullback to support or breakout/gap up from earnings to establish new positions.


      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). Keep a watchlist of these symbols up at all times and review the price action every night after the close. This list of leaders is updated every Monday.

          Leaders - AKS ANR APA BUCY CF CLF CLR CMP CSX DVN EOG FDG FSLR HAL HP JRCC LNN MOS MTL POT RRC SID SQM STLD SWN USO UNP X XEC

          Strong stocks at/near the 50-day MA (a key institutional support level) - CBD, SIAL,

          Leading stocks breaking the 50-day (last week) - AEM, GOLD, TRA


        Notes on leaders:

      • Fertilizer stocks sold off on huge volume last week. Looks as if they could use a few weeks of rest.

      Open Position Detail:

      • flat


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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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