There is now more than enough evidence to say with certainty that digital currencies are here to stay.

In the last few quarters, the market has spoken. The size of some of these coins is mind-blowing.

What was once peanuts, the total market cap of the asset class achieved the $2T milestone at its peak last month.

There are literally several thousands of options or individual coins/tokens to express our opinions, and the list is growing every day.

So the number of options and ease of access is only accelerating the interest and activity in the space. We don't see this changing.

This is the video recording of our June 3, 2021 Monthly Charts Live Strategy Session

From the desk of Willie Delwiche.

This All Star Charts +Plus Monthly Playbook breaks down the investment universe into a series of largely binary decisions and tactical calls. Paired with our Weight of the Evidence Dashboard, this piece is designed to help active asset allocators follow trends, pursue opportunities, and manage risk.

This is the video recording of the June 3rd Town Hall Meeting w/ Willie Delwiche & JC Parets

06/03/21 2PM ET

This is the video recording of the June Options Conference Call with Sean McLaughlin & JC Parets.

The greatest trick the market ever pulled was convincing growth investors that they weren't in a bear market....

You can really see it in this week's AAII Poll, which shows the FEWEST amount of bears since January 2018.

One thing I've learned, is that when the bears run out, the market has a funny way of creating some:

We can highlight as many charts and Altcoins as we like to demonstrate where things could be leaning, but with most things in markets, less is often more.

In this case, it's straightforward.

If 60% of the asset class, namely Bitcoin and Ethereum, can breakout from their current consolidations, the short-term trend is likely up, and it'd be wise to put some risk back onto the table.

Alternatively, if they cannot, and these patterns resolve lower - we should anticipate messier action for longer.

Over the past few days, we've seen the market resolve higher. With the new all-time high in place, we're seeing one sector witness growing strength.

Energy has been a part of the sectors that have been showing strength for some time now. However, there are a few stocks that are now joining the bandwagon of the 'breakout express' and this seems like a good time to jump aboard!

To start off, let's take a look at the Energy index and see what we've got there. Nifty Energy has clocked a new all-time on the Monthly timeframe. Needless to say, that is a big positive! So what are the levels that we're watching? Well, from a slightly longer-term view (we're looking at monthly charts, remember?), if Energy continues to chug on higher, we're looking at a target close to 23,825.

Click on chart to enlarge view.

Now let's dive into the stocks.

First up, let's take a look at a recommendation that has come up in our analysis in the past.

Gujarat Gas has been a part of our trade ideas as recently as the...

From the desk of Willie Delwiche.

Key takeaway: Sentiment continues to shift away from optimism and toward pessimism, though as with anything it is not a straight line. Speculative activity is flaring up again this week, the trend in trading volumes and call activity suggests less risk appetite on the part of investors. Optimism unwind is happening in the context of elevated longer-term risks, with earnings growth expectations and valuations at elevated levels. A sideways summer that cools optimism and helps relieve valuation pressures could help pave the way for the resumption of a cyclical rally later this year.

Sentiment Report Chart of the Week: Diminishing Highs

As optimism fades, so does the number of new 52-week highs in the S&P 500. It takes bulls to make a bull market, and from a tactical perspective, our sentiment and breadth measures suggest the bulls have already left for summer vacation.

From the desk of Willie Delwiche.

Once again this month, I'm going to share info on positions that were closed in the month of May. As a reminder, our exit plans are always laid out ahead of time in each trade idea we publish. In every case, the exits mentioned below were all exited in accordance with the plan as laid out.

To gauge any market trend, we must look under the surface at the components themselves.

This is true for Stocks, Commodities, Bonds, and even Cryptocurrencies. It's Universal.

For instance, when discussing Smart Contract Platforms like Polkadot or Ethereum, we evaluate whether the bulls are diving deep into the projects of the other offerings in the ecosystem.

This is Technical Analysis 101, and it goes back to Charles Dow in the 1800s looking for confirmation of the major averages.

Over 130 years later, in entirely new assets, the same principles govern markets.

In this case, we're looking at Polkadot's first project release and Canary Network, Kusama $KSM.

Similar to how Litecoin is seen as the experimental little brother to Bitcoin, any new additions to be implemented on Polkadot go through Kusama first.

For this reason, the two trade very much in tandem.

So how about this divergence?