The MTG Stalk Sheet
May 28, 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




AEM - Agnico-Eagle Mines

  • Industry - Gold
  • Side - Long
  • Shares - 175
  • Stalking since - May 28
  • Timeframe - 5 - 20 days
  • Trigger - 68.30
  • Target - will trail stop
  • Stop - 66.49
  • Notes -
      • AEM is forming a bullish double bottom pattern (as is GLD).
      • Note the price action from 4/24 to 4/29, which undercut the prior lows of March but quickly reversed back up.
      • AEM gapped above the downtrend line and the 50-day MA on 5/16 and pushed higher, but the volume was well below average during the move so we did not enter.
      • We are buying the first pullback to the 50-day MA, which offers a low risk buying opportunity in this situation (we are taking a little over a half position here).
      • AEM should hold the 50-day MA, so our stop is about a point below the 50-day MA minus a little more wiggle room.
      • Trade expectations - Look for AEM to bounce off the 50-day MA and test the recent swing high. If we see a breakout above 73.24 on a pick up in volume we will look to add to our position.
        "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 - (changes to trigger prices are highlighted in red)

          Pullback entries - (2-5 day pullback in a strong uptrend or pullback to the 20 & 50-day MA's)

        • AEM - buy pullback to 68-68.50 (50-day MA)
        • GG - buy pullback to 40-41 (triggered 5/27)

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

        • AEM - 73.36

          SHORT WATCHLIST AND TRIGGER PRICES

          New setups

        • WYNN - 98.96
        • AAPL - short bounce to 188-189, stop over highs (above 193)
          ---------------------------------
        • AMX - 56.30
        • RAI - 54.28
        • AG - 58.24
        • CIT - 10.81
        • TPX - 10.66 (false triggered on 5/27)
        • LVS - 66.45 (triggered 5/27)


        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):

            LVS short (125 shares from May 27) -
            sold short 65.93, stop 68.76, target new 52-week lows, unrealized points = (0.29), unrealized P/L = ($37)

            AG short (175 shares from May 27) -
            sold short 58.64, stop 60.80, target 50.50, unrealized points = (0.87), unrealized P/L = ($154)

            ISRG short (50 shares from May 27) -
            sold short 282.29, stop 288.51, target 236.00, unrealized points = (3.79), unrealized P/L = ($190)

          Closed positions (since last report):

            (none)

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

            $32,618


          Notes:

          • Per intraday email alert, we sold short AG, LVS, and ISRG.


          Market Conditions / Gameplan:

          • We are looking for high quality shorting opportunities to develop over the next two weeks.


          Market Leaders:

            Monitoring the price action of leading stocks is the best way to gauge the health of the market (when the market is trending higher). Keep a watchlist of these symbols up at all times and review the price action every night after the close. This list of leaders is updated every Monday.

              Leaders - ANR BTU CLF CLR CNQ CNX CSIQ EAC ENER FLIR FLR FRO GGB HES JRCC ME MEE MTL OIS OXY PBR.A PCX PXD SID SM SOL STO SU TS WLT X

              Leading/strong stocks at/near the 50-day MA (a key institutional support level) - ILMN, MOS, KEX, STO, STLD, GNK, MTL, PCLN, FSLR,

              Leading/strong stocks breaking the 50-day (last week) - SIAL, CF, NUE, LNN


            Notes on 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:

          • LVS - Should hold below 66.50.
          • ISRG - A move below the 5/27 low should trigger a selloff.
          • AG - Look for the price action to sell off hard below the 5/27 low.


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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.

          Copyright © 2002 - 2007 - Morpheus Trading, LLC
          All Rights Reserved



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