See a big stock rally ahead? Be patient, money manager says

The Standard & Poor’s 500 index jumped about 20 % of its lowest level in April, but 10 % sales shock is still with us.

Want some guide? Look at what happened on Friday when president Trump threatened to increase tariffs to 50 % on imports from the European Union and add a 25 % tariff to the iPhone imported from India.

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S&P decreased 0.7 %. Dow was 0.6 %. Nasdaq Composite and Nasdaq-100 indicators decreased about 1 % each.

IT shares decreased by 1.3 %. apple ((Aapl)) 3 % decreased (and 7.6 % for the week), and the market value decreased less than 3 trillion dollars.

For this reason, Jay Woods, the world’s chief strategy in Freedom Capital Markets, believes that investors need patience in the next few months.

This week, Woods said in an interview with Chris Versace, column writer and director of Thestreeet Pro, that there will be important profits that will come this week and other events in the next few months that can be able to be able to have the whipsaw markets.

The interview is part of the “Stock and Markets” chain from thestreeet Pro.

The US market has seen a great operation since its bottom in early April, and it is a bit crowded.

Nasdak witnessed the relative strength index at the top of 70 – a signal signal – for a period of four days ending on May 19.

The S&P 500 came within 3 % of the new highlands on May 19 and it seems that it now needs a 200 -day moving reflux, and now about 5,773, to enhance investor confidence.

In addition, it is not clear when the tariffs will end. One of the reasons for the introductory threat by 50 % on the European Union is that the Trump administration believes that progress in commercial conversations is very slow.

Related: Moon hedge manager sees us to become Greece

Woods works in Wall Street for 20 years after graduating from Fordham University. His career includes the time he spends as a ground trader on the New York Stock Exchange.

Through training, he is a technical analyst and begins any analysis by understanding financial plans and moving to the basics.

Below are the main challenges that markets and investors face:

Nafidia ((Nvda)) The high -end chips maker, the profits of the second quarter after the closure of Wednesday, and Woods said that the company was not rewarded for the strong profits that it was reported in in the last quarters.

NVIDIA is the developer of graphics processing units that are the key to artificial intelligence.

Related: The veteran fund manager sends a difficult message about the interest price policy in the Federal Reserve

The stock was closed on Friday at $ 131.29. But he recently did not approach his highest level in 52 weeks at $ 153.13, which was reached on January 7.