The MTG Stalk Sheet
May 29, 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 did see some decent swing entries develop in energy related stocks yesterday, however, we wanted to avoid loading up on long positions as the market continues to bounce on weak price and volume action. If anything catches our eye 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

ESV - 73.30
----------------------------
GG - buy pullback to 40-41 (triggered 5/27)
AEM - buy pullback to 68-68.50 (50-day MA)- triggered on 5/27

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

SHORT WATCHLIST AND TRIGGER PRICES
RAI - 54.69
TPX - 10.66 (false triggered on 5/27)
LVS - 66.45 (triggered 5/27)
AAPL - short bounce to 188-189, stop over highs (above 193)- triggered 5/28
CIT - 10.81 (triggered 5/28)
WYNN - 98.96 (triggered 5/28)

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 = $467

291.05

unrealized P/L = ($47)

unrealized P/L = ($110)

Closed positions (since last report):

net P/L = ($313)

net P/L = ($380)

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

$45,298

Notes:

ISRG and AG stops triggered.
We bought 175 shares of AEM on the pullback to the 50-day MA.
Per intraday email alert, we re-entered our ISRG short position because we stopped out so late in the session from a possible stop hunt. We re-entered the position risking another $150.

Market Conditions / Gameplan:

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

Market Leaders

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

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 - Sharp reversal action, our stop is in the right place.
ISRG - We moved the stop up 1 point higher (note the change above in red).
AEM - Great price action off the 50-day MA.

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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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