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Friday's selloff caught everyone's attention. Even as stocks kept hitting new all-time highs over the past two weeks, I warned in this column that defensive rotations were taking place underneath the surface.

This hasn't changed my bullish stance. We need to think across multiple timeframes simultaneously.

Last week, those defensive money flows continued. I am looking for bulls to step up sooner than later.

To last in this business, you must understand that different trends can exist across different timeframes. Over the past month, utilities staged an impressive rebound. This signaled that market risks were rising. We saw this finally manifest into serious selling on Friday.

The year-to-date and one-year leaders tell a different story. Tech and communications still dominate. These sectors signal growth and a healthy risk-taking environment. These leaders are saying to buy this dip.

Cooler heads prevail in moments like these. If you're getting wiped out after one or two days of selling, you need to dial back on risk. Start by reducing your position sizing and placing your stops in better locations.

One day doesn't make or break a trend. If you're gambling instead of trading, one day can make or break you. Don't be a gambler. Stack the odds in your favor like a proper trader would.

I'll keep you posted on what I'm seeing. I don't expect this turbulence to last very long at all.

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