The MTG Stalk Sheet
June 2, 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. The broad market bounced higher last week, but the action was not very impressive with more of a "running the shorts" feel rather than the beginning of a new leg up. There isn't a whole lot to do on the long side here, though a few days of sideways action may produce quality setups. We are still maintaining a short bias, but we are in no rush to load up on positions. If anything catches our eye intraday while scanning, we will promptly send an 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

MT - buy pullback to 96.50-97.00 (20-day EMA)
APH - buy pullback to 45-45.50
FLR - buy pullback to 178.50-179.50 (20-day EMA)
CENX - 74.05

Breakout entries (from cup and handles, bull flags, flat bases,and downtrends)
ILMN - 79.16
APH - 47.26
CMP - 75.92

SHORT WATCHLIST AND TRIGGER PRICES
LEH - 36.29
CTX - 18.59
COF - 47.12
RYL - 27.48
RAI - 54.59
AMP - 46.74
SUN - 43.45

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 = $439

Closed positions (since last report):

net P/L = ($356)

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

$12,371

Notes:

LVS stop triggered.

Market Conditions / Gameplan:

We could be in for more choppy price action as major indices come into resistance. We are biased to the short side, however, a few days of sideways action here should produce a few long setups.

Market Leaders

Leaders - ANR ANSS BNI CLF CLR CRK CSX CSIQ EAC ENER FDG FLIR FLS FMC HP JOYG JRCC KSU MA MTL NFG NSC OIS PBR.A PVA PXD SM SOL SOHU SPW SQM SU UNP USO WDC WFT WLL WLT X V

Leading/strong stocks at/near the 50-day MA

(a key institutional support level) - ILMN, APA, STLD, RIG, NUAN

Leading/strong stocks breaking the 50-day (last week) - FSLR, SPWR, RRCM JASO, EOG, KEX

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:

AEM - Held up well versus pullback in gold.

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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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