Robotic Stock for a Robotic Market

Given that Netflix reports tonight, then Tesla tomorrow evening, it is easy to overlook Intuitive Surgical (below, on the quarterly chart sporting a freight train uptrend since 2009, despite the 2020 hiccup) reporting tonight, as well. 

ISRG trades at a forward PE of nearly fifty-eight as I write this, remarkably expensive and aligned with how one-way the overall move in the stock has been for fifteen years now, as each pullback or correction has been gobbled up to no end. 

In a way, it is entirely appropriate to see the stock which is the home of da Vinci robotic surgical systems function like this, in such a robotic market where each dip gets bought and crowded, expensive winners cluster at the top and become even more crowded and more expensive. Hence, I will be on the lookout for telltale signs when the rubber band snaps, which could come as soon as tonight for some of these leading names. 

Small caps tried to lead higher again this morning in their rotation attempt but now I see the IWM reversed down to soundly red. Similar comments apply to biotechs. On the bullish side, I am still looking to see if USO can clear $70 above for an oil rally. 

Overall, the indices are in an apparent holding pattern today in front of earnings kicking into full gear tonight, alongside some notable macro data later this week.