In a small heavy saucepan boil water with sugar, without stirring, until a golden caramel.
Remove pan from heat and carefully add red wine vinegar and 1 tablespoon balsamic vinegar down side of pan.
Stir mixture over moderate heat until caramel is dissolved, about 3 minutes. Remove from heat.
In a heavy saucepan cook morels in butter, stirring over moderate heat until liquid from morels is evaporated, about 5 minutes.
Transfer morels with a slotted spoon to a bowl and reserve.
Add shallots to pan and cook, stirring, until golden. Stir in wine and boil until reduced to about 1 cup about 15 minutes.
Add stock and reserved morel soaking liquid and reduce to about 1-1/4 cups, about 15 minutes.
Remove pan from heat and stir in caramel mixture.
Add morels to sauce with salt and pepper to taste.
If desired stir in additional Balsamic vinegar, 1 tablespoon at a time, and lemon juice.