By Tom Aspray, MoneyShow.com

The winning stock strategy for 2011 was to buy high-yielding stocks. Following Tuesday's surge in global markets, the focus may now move more towards growth stocks. The technical action in the stock market does favor further gains, though the market is likely to take a few days to digest its gains.

Nevertheless, I expect high-yielding stocks in strong sectors -- including the Dow stocks discussed here -- will do well, and these should make up a part of all portfolios.

One group that looks quite interesting in terms of yield and risk are specialty real estate investment trusts, or REITs.

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The Dow Jones Specialty REITs Index broke through major resistance, line a, last week. There is further resistance at the April 2011 highs of 123.53, which is more than 2.5% above current levels.

• The relative performance, or RS analysis, broke its downtrend, line b, in December and is in a clear uptrend (line c)
• Daily on-balance volume (OBV) has also been very strong, moving through five-month resistance (line d) in December
• A pullback in the Specialty REITs Index to the 116.50-118 area is likely over the near term, which should be a buying opportunity
• The uptrend, line b, is now in the 112 area

There are two REITs in particular that I like:

Weyerhaeuser (WY) is a $10.2 billion industrial REIT that concentrates on the forest product industry. It currently yields 3.2%, and in November, it tested long-term support in the $15.40 area, line f.

• The 38.2% Fibonacci resistance from the early-2011 highs at $18.79 has been overcome
• The 50% retracement resistance stands at $20.04
• The year-long downtrend (line g) in the RS line has been broken, suggesting that it is starting to outperform the S&P 500
• RS analysis has long-term support at line h
• Weekly OBV has just moved above its weighted moving average (WMA), which is consistent with an intermediate-term bottom
• Initial support now stands at $18 with stronger support in the $16.90 to $17.30 area

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