In the financial sector, using prescriptive models like Black-Scholes may not always be the best approach. A descriptive framework, like a Markovian approach, can provide insights into past behavior and potential future trends, without the need for complex formulas. Three stocks that may be showing buy signals include Kroger, Cinemark, and Confluent.
Kroger has shown a 4-6-U sequence in the past 10 weeks, indicating a potential upward trend with a 72.73% chance of upside. Cinemark, despite recent drops, has a 4-6-D sequence that historically resulted in upside 58.7% of the time. Confluent experienced extreme volatility but has a 6-4-D pattern that led to upside in 65.22% of cases.
For those willing to take on the risk, bullish speculators may find opportunities in these stocks based on a descriptive framework. Barchart Premier members can access options pricing tools to enhance their strategies using this approach. The potential for significant gains exists for those willing to make informed speculative plays in the market.
Read more at Yahoo Finance: How to Use Descriptive Math to Play the Hand, Not the Dealer