The themes for 2014 have been rotation and reversion.

Stocks that worked very well last year have been hit the hardest, and there has been a very defensive rotation into materials and consumer staples. Certainly not the most bullish part of the market cycle.

Many energy names are standouts that are much stronger than damaged tech.

LNG IS ONE OF THOSE NAMES

Cheniere Energy Inc. (LNG) is in the liquified natural gas game, and judging by the stock price the game has been good. It is hovering near all time highs and has built a base. A simple breakout play should suffice here– a move above 60 would be a clean breakout with an initial target at 65.

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However because this market has seen its fair share of failed breakouts, a more nuanced trade would be to anticipate the breakout here with a stop under 55 and then sell half once the stock does break 60. With implied volatility at one year lows, long calls are a cheap way to play it– something like the July 57.50 calls with similar risk management as stock.