The MTG Stalk Sheet
May 2, 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




CMP - Compass Minerals

  • Industry - Non-Metallic Mining
  • Side - Long
  • Shares - see notes below
  • Stalking since - May 1
  • Timeframe - 5 - 20 days
  • Trigger - 64.10 or 63.10 (whichever comes first)
  • Target - test of prior highs
  • Stop - 60.84
  • Notes -
      • CMP has pulled back to support of the 50-day MA for the first time since breaking out in February.
      • For the past two sessions CMP has consolidated at the 50-day MA.
      • Dropping down to a 15-minute chart we see the tight range that formed yesterday afternoon.
      • There are two buy entries, but only one entry will trigger:
        • entry A - is an entry on strength over the tight intraday range at 64.10 -
        • entry B - is an entry on weakness, on a pullback to 63.10.
        • Whichever setup triggers first is the one we will go with (cancel the other setup).
      • Position size -
        • If entry A triggers, we are buying 125 shares at 64.10.
        • If entry B triggers, we are buying 175 shares at 63.10.
      • The stop for either entry is the same beneath the low of 4/30 at 60.84.
      • Trade expectations - We are looking for a move back up near the prior highs. We do not expect a smooth ride up there, so we have small size and are prepared for some choppy action.
    "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)

      New setups

    • CMP - 64.10 or pullback to 63.00 (50-day MA)
    • MTL - pullback to 136-137 (50-day MA)
    • COG - pullback to 53 (50-day MA)
    • HP - pullback to 49-49.50 (50-day MA)
    • AKS - pullback to 58-59 (50-day MA)
    • SOL - 16.01
      -------------------------------
    • LNN - pullback to 50-day MA (94-95)
    • TBSI - 41.26 (triggered 5/1)
    • IMCL - 47.26 (triggered 5/1)
    • DRYS - pullback to 78-79 area (establish small position/ add over the recent swing high)
    • CBD - 43.26 (false trigger on the open 4/28)
    • IVGN - 92.51 (triggered 4/28)
    • SMS - 33.06 (triggered 4/28)
    • CNX - 82.76 re-entry (triggered 4/28 at 82.01)
    • ITRI - pullback to breakout pivot (99.00 - 100.00) (triigered 4/29)
    • EXM - pullback to 39.50-40.50 area (establish small position/ add over the recent swing high) - triggered 4/29
    • ILMN - 78.66 (triggered 4/30)

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

    • EMR - 54.12
    • NUE - 76.15 (triggered 4/28)
    • PRGO - 41.01 (triggered 4/28)
    • UTHR - 89.26 (triggered 4/28)
    • DSX - 31.26 (triggered 4/28)
    • MELI - safe entry over highs at 53.70 (early entry triggered 4/28 at 52.86)
    • BKE - 49.61 (triggered 4/30)
    • SOL - pullback to 16-16.50, (triggered 5/1)

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

      SHORT WATCHLIST AND TRIGGER PRICES

    • ISRG - short bounce to 289-290 or breakdown below 285.75 (triggered 5/1)
    • CMG - short bounce to 50-day MA (from 106.50 - 107.50)
    • SCHL - 27.84
    • UNH - 33.28 (triggered 4/29)


    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:

      • none


      Market Conditions / Gameplan:

    • Leading stocks of 2008 have cooled off over the past week, digesting large gains made over the past few months. The first time a leading stock pulls back to the 50-day MA after a 2-3 month run is typically a strong area of support. We were very quiet during yesterday's rally as the majority of stocks moving higher were all off the lows. While these stocks may indeed push higher, we just do not feel comfortable buying laggard stocks off the 52-week lows. We plan to keep an eye out for new stocks breaking out to new highs and for quality pullback entries in 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). 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:

      • Leading stocks are pulling back to their 50-day MA's.

      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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