To calculate the gradient, we used the Python function numpy.gradient. The gradient provides a measure of the rate of increase or decrease of the signal; we consider the absolute value of the gradient, to account for the magnitude of change rather than the direction of change. To identify ...
Wherever the S&P 500 is when you read this article, I encourage you to calculate backwards the implied earnings estimates and see if they make sense. If they don’t make sense, then you should take action at your own risk. In finance, we call this a back-of-the-envelope calculation. W...