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

Corrections were made to the open and closed positions. UTHR and ISRG are new positions, while no trades were closed out on Friday.

ILMN - Illumina

Industry - Biotech

Side - Long

Shares - 200

Stalking since - May 5

Timeframe - 5 - 20 days

Trigger - 80.11

Target - breakout to new highs

Stop - 77.85

Notes -

• ILMN has been trading in a tight range below the highs over the past week and a half.
• Volume has been well below average during the consolidation.
• The buy entry is over the highs of the tight range.
• The stop is placed beneath the low of 5/2.
• Trade expectations - We are looking for a move to new highs on a pick up in volume. If the volume is light on the breakout or the price action is weak, we may trail a tight stop and take a small loss.

---

"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)


• SLB - 100.65
• CF - 136.01
• MOS - 125.60
• OTEX - 35.50-36.50 pullback to breakout pivot
• DRYS - 89.00 pullback to breakout pivot
• SOL - pullback to 15.50 (20-day MA)
• COG - pullback to 53-54 (50-day MA)
• STLD - pullback to 34.00 (50-day MA)
• LNN - pullback to 96-97 (50-day MA)
• APA - pullback to 124-125 (50-day MA)
  
  Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)
  
  
• ILMN - 80.06
• CELG - 65.01
• FLS - 125.26
• EAC - 46.55
  
  SHORT WATCHLIST AND TRIGGER PRICES
  
  
• TSO - 24.74
• RJET - 17.17
• SCHL - 29.87 & 27.84
• TIN - 11.16
• UCBI - 13.65
• FTO - 24.49
• GLBL - 15.40
  
  

---

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):


UTHR long (100 shares from May 2) -
bought 90.36, stop 86.85, target 99.50, unrealized points = + 0.73, unrealized P/L = + $73

ISRG short (100 shares from May 2) -
sold short 289.60, stop 299.30, target 252.00, unrealized points = (0.18), unrealized P/L = ($19)


Closed positions (since last report):


(none)


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


$20,710


Notes:


• Per intraday email alert, we sold short ISRG on a weak volume bounce from a sharp selloff (we are not bearish....it's just a nice short setup).
• Per intraday email alert, we bought the late afternoon breakout in UTHR.
• The true opening price in CMP was around 65, so we can't officially list it as an entry as it gapped above our trigger.


Market Conditions / Gameplan:


• We are scanning for quality pullback and breakout 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
  
  Leading/strong stocks at/near the 50-day MA (a key institutional support level) - STLD, PCU, CRZO, ECA, SYT, XTO, MUR, ADM, MON, FCN
  
  Leading/strong stocks breaking the 50-day (last week) - PBT, XTO, OI, SIAL, DE, MDR, CVA, DNR, FXE, AG
  
  
  
  Notes on leaders:
  
  
  • Fertilizer stocks were bought up off support of the 50-day MA. Let's see if they can hold up and push higher this week, which would be encouraging action for the market.
    
    
  Open Position Detail:
  
  
  • UTHR - Late Friday breakout that looks to be in good shape/ just triggered.
  • ISRG - Closed near our entry point/ just triggered.
    
    
    
  Click here for a free trial to Morpheus Trading Group's other newsletter services.
  
  
  Please check out the MTG Stalk Sheet Subscriber Guide to learn how to get the most from your subscription.

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.

Copyright © 2002 - 2007 - Morpheus Trading, LLC
All Rights Reserved