Higher interest rates usually mean bad news for real estate. But if the move higher in bond yields continues, a consequent drop in real estate stocks will offer an opportunity for traders, if one strategist is correct.
Since the start of February, the yield on the benchmark U.S. 10-year note has gone from 1.65 percent to 2.39 as of Friday's market open. During that time, the ETF tracking real estate companies (trading under the ticker symbol IYR) has fallen 8.7 percent.
Based on the IYR's technicals, there may be a little more trouble ahead for the ETF if rates continue higher, says said
"When you're talking REITs, you're taking rates," he said. "If you get one right, you have a pretty good shot at the second."