The MTG Stalk Sheet
May 6, 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

There are no new setups for today. We are looking for a pullback entry in BMRN, as well a potential brekaout on high volume. NUAN is setting up nicely, however, it reports earnings May 12, which gets in the way if we buy the pullback to the 20-day EMA. We will notify via email alert of any new setups or entries.

"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

BMRN - pullback to 35.50-36.00 (50-day MA)
TITN - 20.05
NUAN - pullback to 20.00 (lows of range and 20-day MA)
-------------------------------------
OTEX - 35.50-36.50 pullback to breakout pivot
STLD - pullback to 34.00 (50-day MA)
LNN - pullback to 96-97 (50-day MA)
SLB - 100.65 (triggered 5/5)
CF - 136.01 (triggered 5/5)
MOS - 125.60 (triggered 5/5)

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

New setups
CRM - 70.10
BMRN - 39.20
NUAN - 21.58
CE - 45.90
AKS - 69.76
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FLS - 125.11 or break of downtrend line on hourly chart
ILMN - 80.06 (triggered 5/5)
CELG - 65.01 (triggered 5/5)
EAC - 46.55 (triggered 5/5)

SHORT WATCHLIST AND TRIGGER PRICES
TSO - 24.74
RJET - 17.17
SCHL - 29.87 & 27.84 (29.87 entry triggered 5/5)
TIN - 11.16
UCBI - 13.65 (triggered 5/5)
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):

unrealized P/L = + $205

unrealized P/L = + $132

unrealized P/L = ($206)

Closed positions (since last report):

net P/L = ($112)

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

$20,710

Notes:

ILMN long triggered.
Per intraday email alert, we bought CELG on a breakout but sold (for a small loss) due to the lack of follow through. CELG reports earnings before the bell on 5/8, so we are cancelling the re-entry setup per yesterday's email alert. If Monday's breakout followed through on strong price and volume action, then we could have held on for a very quick 2-3 day pop, but we do not want to stick around in something that isn't moving heading into earnings.

Market Conditions / Gameplan:

We are scanning for quality pullback and breakout entries in leading stocks.
Market Leaders:
- Leadership is holding up fine.
Open Position Detail:
- UTHR - Extending from pivot....in good shape. No change in stop.
- ISRG - Needs to close below 285-286. No change in stop.
- ILMN - The price action was sluggish above the pivot, and though the volume picked up on the breakout it was still below average. As long as ILMN holds above the breakout pivot we will stick with the position and look for the price and volume action to pick up. 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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