• 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
#HEG
• Example 1: BofAML sees 100% rise

• Read this thread to know in detail #HEG
https://t.co/IKabWNmt3O
• 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://t.co/rX9WfLM0ZZ
Example 3: UBS downgrades #BAJFINANCE

https://t.co/U3iLqfvQrW
Example 4: Moody's crack down on 5 Indian PSU's

@iManasArora utilized this opportunity to go long in PNB

https://t.co/F9mNlJDiea
• 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://t.co/URyKZvJIEX
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://t.co/kBrasnQrcT
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

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