• A cash stock wizard, who doesn't trade the stereotype triangle, rectangle, H&S etc. • Creative enough to look beyond the obvious • Covering another unique set up: Rating Houses Contra Trades or as he calls it "Moody-no-so-Moody indicator" 🧵 to learn from @iManasArora
• Usually international rating agencies come with a downgrade only after a massive correction in the stock • Similarly these rating agencies come with an upgrade report post a sharp rise in the stock • Don't take them on face value and DYOR!
• How Ultra Bullish articles from rating/broker houses is used to dump the stock to retail • New traders provide liquidity for BIG players to offload their stocks
• Example 1: BofAML sees 100% rise • Read this thread to know in detail #HEG https://x.com/iManasArora/stat...
• How depressive articles from rating/broker houses is used to make the retailers sell their stocks • Retailers provide opportunity to the BIG players to accumulate them at rock bottom prices #TATAMOTORS
• Example 2: S&P downgrades TATAMOTORS • Read this to know in detail #TATAMOTORS https://x.com/iManasArora/stat...
Example 3: UBS downgrades #BAJFINANCE https://x.com/iManasArora/stat...
Example 4: Moody's crack down on 5 Indian PSU's @iManasArora utilized this opportunity to go long in PNB https://x.com/iManasArora/stat...
• From the above examples it is quite clear that taking contra bets is easy BUY, when the following conditions are met: 1. The stock has already plummeted by 90-100% 2. The rating report then downgrades the stock 3. The stock refuses to go down any further
SELL, when the following conditions are met: 1. The stock had already had a fab run up (15-20x in a very short span i.e. 12m) 2. The rating report then gives an ultra bullish tgt of 100% up from CMP 3. News based rally on a low volume
• Before blindly taking contra bets, check whether the conditions above are met and • Also, learn Stage Analysis
• And if you think @iManasArora only takes contra bets on: 1. Extended moves 2. Rating houses report Then wait, this time he is bullish on a country - 'Time to buy Russia' https://x.com/iManasArora/stat...
Next time you see an upgrade/downgrade report from some major rating agency just see whether the conditions mentioned in this thread is met, basically DYOR before acting on it! #BroTip
If you have missed @iManasArora Extended moves & Reversal plays set up then check it here https://x.com/niki_poojary/sta...
You can also go through his TL @iManasArora where he shares his tricks which no textbook has covered Hope you discovered something new (because that's the point!) If you did, share it with a friend Hop back up to retweet the first tweet