The MTG Stalk Sheet
June 4, 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




OMG - Om Group

  • Industry - Specialty Chemicals
  • Side - Short
  • Shares - 150
  • Stalking since - June 4
  • Timeframe - 3 - 10 days
  • Trigger - 43.94
  • Target - around 38.00
  • Stop - 46.55
  • Notes -
      • OMG broke the 200-day MA on heavy volume on 5/8, leading to a high volume persistent selloff over the next two weeks.
      • Has bounced higher over the past five sessions, in orderly fashion.
      • The short entry is beneath yesterday's low.
      • The stop is a little wide, as we placed it above the 20-day EMA just to be safe.
      • Trade expectations - We are looking for a resumption of the downtrend with a close beneath 44.00. At the very least, we expect a test of the recent swing low at 40.
    "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)

      New setups

    • SOL - 25.15
    • SVNT - 26.76
      --------------------------
    • FLR - buy pullback to 178.50-179.50 (20-day EMA)
    • MT - buy pullback to 96.50-97.00 (triggered 6/2)
    • CENX - 74.05 (triggered 6/2)

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

      New setups

    • V - 88.10
    • FLS - 139.20
      --------------------------
    • CMP - 75.92 (triggered 6/3)
    • APH - 47.26 (triggered 6/2)
    • ILMN - re-entry above 79.20 (triggered 6/3) & (false triggered 6/2 on very light volume)

      SHORT WATCHLIST AND TRIGGER PRICES

      New setups

    • WYNN - 97.80
    • CMG - 88.75
    • OMG - 43.94
    • GM - 17.08
    • AMP 45.07
      --------------------------
    • LM - 52.09
    • NOK - 27.49 (triggered 6/3)
    • PFG - 51.82 (triggered 6/3)
    • LEH - 36.29 (triggered 6/2)
    • CTX - 18.59 (triggered 6/2)
    • COF - 47.12 (triggered 6/2)
    • RYL - 27.48 (triggered 6/2)
    • AMP - 46.74 (triggered 6/2)


    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):

        AEM long (175 shares from May 28) -
        bought 68.17, stop 66.49, target will trail stop, unrealized points = + 0.20, unrealized P/L = $33

        COF short (150 shares from June 2) -
        sold short 46.90, stop 49.26, target 39.11, unrealized points = + 0.02, unrealized P/L = $1

      Closed positions (since last report):

        (none)

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

        $19,000


      Notes:

      • none


      Market Conditions / Gameplan:

      • The bottom fell out of the market yesterday afternoon, and though it recovered into the close we did see some intense selling during the drop. There are a couple of bullish patterns out there, but the confidence on the long side just isn't there. We expect the enviroment for shorting to become a lot easier if/when the S&P 500 breaks down beneath last weeks low.


      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 BNI BUCY CLF CLR CNX CRK CSX CSIQ EAC ENER FDG FLIR FLS FMC HP JOYG JRCC KSU MA MTL NSC 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


        Notes on leaders:

      • We saw some heavy volume distribution in a few railroad stocks yesterday (CSX & BNI).

      Open Position Detail:

      • AEM - Looks like a possible run on stops is in the cards for today.
      • COF - Still holding at/below the breakdown pivot.


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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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