Short term traders as according to SG short term traders index, have an average holding period of 10 days and are mainly into "swing trades", flipping between trend following and mean reverting strategies.

Anyway, this crowd has increased longs in equities rather violently over the past few weeks. The reversal in primarily NASDAQ did a lot of damage to the charts, and could "motivate" the short term crowd to reverse longs quickly.

Second chart shows how short term traders have chased European shorts higher over past weeks.

Given the liquidity and the sudden volatility, markets can remain erratic...