In a month where market pundits made it seem like we were experiencing a sell-off we have never seen before, markets were only slightly in risk-off mode, while EVERYTHING (except long treasuries) is now up for the year.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjBfV-oLp0I_ti-TPn-mdcaySipv6B-oDUI5O9lhxhDnY6VTs7wHZvsX4diXg-9OZCt_Y7cru9_Rad0_jT66gEMi_ASagxgZmzkYVIYIAQBkV2ZFFlbiRf5q5O1dY2o4GFQtjRfS81rkQ/s800/etfperf.png)
The question for investors is whether the risk-off environment was simply a pause following a sharp rise in risk assets in Q1 (i.e. just the temporary mean reversion seen below).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjVr7eVRO9ZzcpXAfU7jogi-XFqCnA4ZfxNmLosJdB2tmaZuC_vzpMM9areCO19Np6AFDu5l04I14Q0ZIQeVYwHCXQo-pJF8Y4mVi9KlgcXhUkk8Va3FDJFOR-0DJ2inkXpYhVwK8KOAg/s800/ETF+vs+Q1.png)
Or the beginning of a European crisis induced broader sell-off that is a continuation of Q3 2011 (as seen below).
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhQ0EnW27uN9rX9XvsfsmTr2cLvAqtJWtZ20Mr0EC8wYmKeg2mdz1Zh6MljB81G9HVwO6HlkRBIJ7sxJGk-yvQ6DkAgE1fzHvi3wAusDGy5mZWCE9m-g3XWMb2FQIvc6sV0UZn5yzZLXA/s800/ETF+vs+Q3.png)
Source: Yahoo Finance
Sell in May, Go Away? Market Technical Analysis SPX, AMZN, AAPL, GOOG, Nasdaq Stock Price Analysis: http://liqwave.blogspot.com/2012/04/daily-update-for-april-27-2012-big.html
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