This paper describes algorithms that can musically augment the realtime performance of electronic dance music by generating new musical material by morphing. Note sequence morphing involves the algorithmic generation of music that smoothly transitions between two existing musical segments. The potential of musical morphing in electronic dance music is outlined and previous research is summarised; including discussions of relevant music theoretic and algorithmic concepts. An outline and explanation is provided of a novel Markov morphing process that uses similarity measures to construct transition matrices. The paper reports on a 'focus-concert' study used to evaluate this morphing algorithm and to compare its output with performances from a professional DJ. Discussions of this trial include reflections on some of the aesthetic characteristics of note sequence morphing. The research suggests that the proposed morphing technique could be effectively used in some electronic dance music contexts.