This crash in Google presents questions for investors. What if you own at a higher level, do you hold or sell? Do you buy more?
What about those that do not have a position in Google? Is now a good time to buy?
For those in both camps - the answer is the same - let's go to the charts.
The first chart shows Google entering a pronounced downtrend - with successive lower highs and lower lows - a telling bear sign. By all accounts - the most likely direction of this stock in the short term is down. So, how far down and when can an investor start buying?
When Apple went through a similar decline, I advised patience and discipline. Don't rush in unless you weigh the risks and rewards. Buying now isn't a huge mistake long term in my opinion, however, you may see wild short term fluctuations in the price of the stock. Keep that in mind if you put money to work here. Buying a crashing stock can be quite lucrative, but also put your investment chops to the test.