Stocks haven't successfully retested the October lows yet, Bob Doll says 

Long-time money manager Bob Doll is warning investors that stocks could breach October's correction lows.

Doll, Nuveen Asset Management's chief equity strategist and senior portfolio manager, believes the Dow's 602 point Monday loss wasn't a fluke.

He suggests there were clues in the early November market comeback that virtually cut October's losses in half.

"We had the rally off the low, and it did not have a lot of confidence and conviction. Breadth wasn't great," Doll said on CNBC's "Trading Nation" on Monday. "This is the retest sequencing."

The Dow on Monday saw its worst day since Oct. 24. The S&P 500 and the tech-heavy Nasdaq also got beaten up — falling almost 2 percent and 3 percent, respectively. The drop pushed the Nasdaq back into correction territory.

Doll sees three major factors "haunting" the market: How long earnings will stay strong, whether the Federal Reserve will tighten interest rates too aggressively and the potential fallout from the U.S.-China trade war.

Doll, who is a long-term bull, contends the economic cycle is still positive for stocks. It's just a question of when Wall Street angst and volatility will subside.

"I don't think we're going to see a new high this year," he said. "We're going to bounce around with a lot of side-wise volatility."

"You've got to have some stomach"

Doll has a 2,800 year-end target on the S&P 500, about a 3 percent gain from current levels. He doesn't have an official 2019 target yet. However, he's urging investors to stay in the stock market through sharp downturns like this one.

"You've got to have some stomach, and go buy some," Doll said. "And, when they've had their big rallies, you can let some go. It's more of a trader's market."

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Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's Closing Bell (M-F, 3PM-5PM ET). In addition, he contributes to CNBC and CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

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