The Red Thumb Phenomenon
Looking at the CAPS members who are in the top one percent, red thumbing stocks is producing spectacular results. The top members have a high percentage of shorts in their CAPS portfolio and I'm having a difficult time finding any that have even 50% long positions. I am wondering why this practice is apparently much more successful than picking outperforms since you still have to beat the market one way or the other to do well in CAPS. I am also wondering if it is just the flavor of the day and if at some point it will cease to work. Would anyone like to weigh in?