The MTG Stalk Sheet
May 21, 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 today. We are scanning for quality pullback entries and will look to establish new long positions over the next few days. As long as leading stocks continue to act right, we see no reason to get bearish on this market. If any new trades are made we will notify via intraday 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

DECK - 137.50
GNK - 76.20
PKX - 141.26
TDS - 50.30
------------------------------
SMS - 34.21
ILMN - 78.60 (triggered 5/19)

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

New setups
TRN - 38.85
SIAL - 60.51
ABT - 55.41
FTI - 78.80
NILE - 55.11
------------------------------
JASO - 27.11
BDE - 24.90 (triggered 5/20)
BRY - 55.51 (triggered 5/19)
ACI - 65.80 (triggered 5/19) second entry at 66.20
SLB - 106.11 & 107.35 (triggered 5/19)
APD - 103.11 (triggered 5/19)
XEC - 70.92 (triggered 5/19)
CAT - 84.60 (triggered 5/19)

SHORT WATCHLIST AND TRIGGER PRICES
HRZ - 10.45
HWAY - 29.55
LFG - 31.09
CI - (triggered 5/20)

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):

37.95

unrealized P/L = + $333

unrealized P/L = + $217

84.26

unrealized P/L = + $138

Closed positions (since last report):

net P/L = ($4)

net P/L = ($88)

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

$27,642

Notes:

FEED and V sell stops triggered for a small loss.

Market Conditions / Gameplan:

We plan to lay low over the next few days and see how this market pulls back from the swing highs. We should see some quality pullback setups develop.
Market Leaders:
- Leading stocks have held up great over the past two days of selling. Only transportation stocks (mostly dry-shippers) have seen any significant distribution, and they needed to take a break anyways after a monster run up off the dead lows.
- 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).
Open Position Detail:
- BMRN - Would like to see a convincing volume breakout above 40.
- V - Our original entry is left on with no change in stop.
- DE - Trailing stop is just above the two day high.
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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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All Rights Reserved

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