The MTG Stalk Sheet
June 5, 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

We are seeing a rotation of money into tech stocks, as evidenced by the Nasdaq outperforming the S&P 500 and Dow by a wide margin yesterday. The S&P will continue to struggle with financial stocks breaking to new 52-week lows and the energy sector in pullback mode. We do not see many high confidence setups on the long side and the choppy market action has wreaked havoc on our shorts. We aren't looking to do too much right now, as we want to avoid overtrading and keep our risk exposure low in this choppy environment. If any new setups catch our eye intraday, we will promptly send an email 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

SOL - 24.51
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)
SVNT - 26.76 (triggered 6/4)

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

New setups
JOYG - 84.15
CTSH - 34.76
HNZ - 50.26
ENER - 63.01
--------------------------
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)
V - (false triggered on 6/4 at 88.10)

SHORT WATCHLIST AND TRIGGER PRICES
AMP 45.07
WYNN - 97.80
CMG - 90.99
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)
OMG - 43.94 (triggered 6/4)
GM - 17.08 (triggered 6/4)

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 = $76

unrealized P/L = ($44)

unrealized P/L = ($262)

Closed positions (since last report):

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

$25,289

Notes:

OMG short setup triggered.
If AEM gaps below our stop on the open gap rules will apply. We plan to use the 20-minute low minus 15 cents as the new stop.

Market Conditions / Gameplan:

It's been a tough environment for trading with plenty of whipsaw like action. We are taking it easy for now, and do not play on getting too heavy until the market decides where it wants to go.

Market Leaders

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

Open Position Detail:

AEM - Missed our stop by 2 cents.
COF - Still holding at/below the breakdown pivot.
OMG - Closed beneath the prior day's 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.

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All Rights Reserved

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