The MTG Stalk Sheet
May 19, 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 in the pre-market today. With the S&P 500 and Dow Jones Industrial Average both testing their 200-day MAs this week, we want to carefully monitor price action of the market over the next few days. We'll most likely lay low with regard to entering new positions, at least until the market decides which way it wants to go from here. If any new trades are made, we will promptly notify via Intraday Trade Alert.

"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

SMS - 35.36
ILMN - 78.60
MELI - 55.55

Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)
FSLR - 313.65 (early entry) & 317.11
BRY - 55.51
ACI - 65.80
JASO - 27.11
SLB - 106.11 (early entry) & 107.35
APD - 103.11
BDE - 24.90
XEC - 70.92
CAT - 84.60

SHORT WATCHLIST AND TRIGGER PRICES
LFG - 29.89
HUM - 42.59
CI - 39.55

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 = + $1,366

unrealized P/L = + $336

unrealized P/L = + $135

unrealized P/L = ($51)

Closed positions (since last report):

net P/L = ($268)

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

$32,623

Notes:

ISRG hit its stop last Friday.
No other changes to positions at this time.

Market Conditions / Gameplan:

With the S&P 500 and Dow Jones Industrial Average both testing their 200-day MAs this week, we want to carefully monitor price action of the market over the next few days. We'll most likely lay low with regard to entering new positions, at least until the market decides which way it wants to go from here.
Market Leaders:
- Monitor leading stocks for potential heavy volume distribution (which could be defined as closing 4-5% down on volume that is at least 200% greater than the 50-day moving average of volume). Sudden distribution in leading stocks is often one of the first indicators of a market top.
Open Position Detail:
- BMRN - The breakout has been steady, but not impressive. Now using breakeven stop.
- V - Holding up well. Current stop minimizes risk significantly.
- SOL - Powerful breakout action and showing major relative strength. We want to give this stock some "wiggle room" to move higher, but have trailed our stop to lock in a gain of at least $400.
- DE - With an abundance of overhead supply left behind in the wake of the May 14 drop, DE should follow the path of least resistance and move lower in the coming days.
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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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