The MTG Stalk Sheet
May 23, 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 have been monitoring broad market price action and laying low over the past week. We will be looking to establish a few more short positions next week and are also monitoring gold stocks for a long entry on a pullback to support. If anything catches our eye while scanning intraday, we will promptly send an email 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

AEM - buy pullback to 68-68.50 (50-day MA)
MICC - 116.51
--------------------------------
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

New setups
AG - 56.30
AMX - 55.89
TPX - 10.73
--------------------------------
HRZ - 10.79
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):

unrealized P/L = + $270

Closed positions (since last report):

net P/L = + $151

net P/L = + $105

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

$10,119

Notes:

The tight stop in V triggered. We ended up about breakeven on our total position if we include the add above 83.00. We had a great entry price which allowed us to be very patient. The setup didn't work but no harm was done.
Per intraday email alert, we sold BMRN on a bounce into the 20-period EMA on the hourly chart. BMRN price action has been disappointing after a promising start. The pattern still looks good, so we will continue to keep an eye on it for a possible re-entry IF the market holds up.
The U.S. stock market will be closed on Monday, May 26, in honor of the Memorial Day holiday. As such, The MTG Stalk Sheet will not be published that day. Regular publication will resume next Tuesday. Have a great holiday weekend!

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:
Open Position Detail:
- DE - Look for a sharp selloff with a close below the 200-day MA.
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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.

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All Rights Reserved

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