The MTG Stalk Sheet
May 22, 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 was no place to hide yesterday, as many leading stocks were either down big or reversing off the highs on heavy volume. When leading stocks and broad market indices come under heavy selling pressure, it's best to get out of the way by cutting long positions or keeping very tight stops. Holding longs when the market is in distribution mode can be very frustrating, as the odds of making significant gains are greatly reduced. We have tight stops in place on both of our longs. As always, we will notify via intraday alert if any new trades are made.

"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 (triggered 5/21)
GNK - 76.20 (triggered 5/21)
TDS - 50.30 (triggered 5/21)
ILMN - 78.60 (triggered 5/19)

Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)
TRN - 38.85 (gapped above entry, no trigger)
ABT - 55.41 (false breakout 5/21)
FTI - 78.80 (triggered 5/21)
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 - 10.80 & 10.45
LFG - 31.09 (triggered 5/21)
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):

80.19

unrealized P/L = + $183

unrealized P/L = + $160

unrealized P/L = + $101

Closed positions (since last report):

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

$27,019

Notes:

We raised the stop in V and have a tight stop already in place with BMRN. Given yesterday's heavy selling in the broad market, we do not want to hold longs, as there is very little reward for the risk taken.

Market Conditions / Gameplan:

We are no longer looking to establish new long positions in leading stocks. We are scanning for short setups and will look to add a few more shorts as setups develop.
Market Leaders:
- Many leading energy stocks printed ugly, high volume reversal bars at the highs yesterday (HES, ANR, SU, CNQ, and OXY).
Open Position Detail:
- BMRN - We have a tight stop in place. If we get any sort of bounce today we will exit into strength.
- V - Though we have a great entry price in V at 79, with the broad market under heavy distribution its best to cut out early and protect our capital. If the market was acting healthy or if V was pushing higher, then keeping a loose stop would have been fine.
- DE - Reversal bar action. Look for follow through to the downside.
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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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