The MTG Stalk Sheet
May 27, 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

Last weeks heavy selling pressure in the broad market signaled the end of the current bear market rally. Look for the longer term bear market trend to kick in over the next few weeks. Financial stocks are once again making a run at 52-week lows. Just as energy stocks have outperformed and led the market higher in 2008, the financials have been the catalyst to the downside. There are no new setups today, however, the self-serve watchlists have been updated and we a monitoring a few short setups for entry. Other than GLD and a few gold stocks, there is very little setting up on the long side. As always, if anything catches our eyes while scanning we will promptly send an 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

AEM - buy pullback to 68-68.50 (50-day MA)
GG - buy pullback to 40-41

Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)
AEM - 73.26

SHORT WATCHLIST AND TRIGGER PRICES
AMX - 55.89
LVS - 66.45
RAI - 54.28
AG - 55.85
TPX - 10.66
DST - 59.89
CIT - 10.81

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):

Closed positions (since last report):

net P/L = + $338

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

Notes:

Per intraday email alert, we stopped out of our DE short when it reversed back above the 200-day MA.

Market Conditions / Gameplan:

We are scanning for short setups.
Market Leaders:
- Most leading stocks are very extended from bases and will need at least five to seven weeks of consolidation to setup again.
Open Position Detail:
- none
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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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