Mr. Rogers (Kenny, that is, not the neighborly guy) has given us some timely advice that works well across many disciplines. I could write a long post using an overextended metaphor as to how the stock market is like a game of poker, taking bits of K-Rog's classic country song to illustrate various analogous situations, but I'll spare you. Suffice it to say that knowing when to hold and when to fold is key a key part of both gambling and investing.

Let's look at a couple examples.

When to fold: PCLN

In poker, folding simply means cutting your losses. You've been given a crappy hand, and the potential reward is not worth the risk of losing your hard-earned chips. Similarly with stocks, folding can mean cutting your losses, but it can also mean knowing when to take your gains. The way you determine this is by looking at various lines of support and resistance.

Last week, I mentioned that I had sold my position in PCLN, citing that the support line I saw at $135 looked like it had broken down. Since then, that price seems to have turned into a resistance line, which appears to validate my thoughts. See the chart below.

The good news for those who might still own the stock, though, is that the 50-day moving average (DMA) seems to have held up as a support. As the 50 DMA approaches the $135 line, the price range will compress, and the price will have to break either above the $135 resistance line, or below the 50-DMA support. But trying to guess which way is nearly impossible, given the recent price action. In my opinion, there's just too much risk that it could break below the 50 DMA support. And that's why I sold, when I saw it stay below $135.

When to hold: TITN

TITN is another stock that I've posted about recently, and one that has been doing exceptionally well since then. I snagged it just above it's 50 DMA, noting that it had been oscillating regularly within a 20% or so range. Since my initial purchase, TITN created a cup pattern that it smashed through a little more than a week ago, making new all-time highs and staying above $23 overall. The top of the base is likely to develop into a good support point, and as the 50 DMA approaches that line, it will only become stronger.

Given the large runup in such a short timeframe, along with the development of the base, TITN is a strong candidate to hold onto for awhile, and possibly even add to. If you look to take a new position at this point, you might want to do it on a pullback to one of the support lines.