NEW BULLISH Plays

American Realty Capital Prop. - ARCP - close: 14.45 change: +0.15

Stop Loss: 13.85
Target(s): 16.00
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 4.8 million
New Positions: Yes, see below

Company Description

Why We Like It:
ARCP is a REIT focused on freestanding commercial properties. The REIT stocks have been crushed recently as many felt the group had gotten ahead of itself. Yet now after a painful -22% correction in shares of ARCP the pullback may be over. Traders bought the dip near $14.00 and its 200-dma two weeks ago and they did it again this past week. If the market turns more volatile investors may seek solace in ARCP's 6.1% dividend yield.

Shares have clearly seen an increase in their volatility therefore I am suggesting we keep our position size small. Use a trigger at $14.60 to launch bullish positions. If triggered our initial target is $16.00.

Trigger @ 14.60 *small positions*

Suggested Position: buy ARCP stock @ (trigger)

Annotated chart:

Weekly chart:



ProAssurance Corp. - PRA - close: 51.30 change: +0.11

Stop Loss: 49.95
Target(s): 55.00
Current Gain/Loss: unopened

Entry on June -- at $--.--
Listed on June 22, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 219 thousand
New Positions: Yes, see below

Company Description

Why We Like It:
PRA provides medical and professional liability insurance to the healthcare industry. Investors have been consistently buying the dips near PRA's moving averages. Back in March and April the stock was bouncing near its 40-dma and 50-dma. The last few weeks have seen shares strengthen with traders buying dips near the 30-dma. Now the market's pullback has pushed PRA back to its 30-dma and shares bounce on Friday. This looks like a new entry point.

Friday's high was $51.44. I am suggesting a trigger at $51.60. If triggered our multi-week target is $55.00.

FYI: PRA will begin trading ex-dividend on June 25th. The quarterly cash dividend should be 25 cents.

Trigger @ 51.60

Suggested Position: Buy PRA stock @ (trigger)

Annotated chart: