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Clearing Up Phelps Dodge

Confused about what Cramer's doing here? Understand his strategy -- and a key to his trading approach.
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Let's review the Phelps Dodge (PD) "sell some" idea that I mentioned, because people seem very, very confused and YOU SHOULDN'T BE, because you need to know the way I think and feel.

When a stock of mine goes up 7 points straight in a couple of sessions, I am being piggish if I don't take some off. I don't care about my cost basis, I care about the fact that a stock of mine just went up 7 points, and that's just too much, too quickly.

Some of you have said to me, "What do I do now? You just told me it was a One. The stock was a One at $60 for heaven's sake; is it a different animal at $67?" I think the stock will bounce around, but if it went back to $60 I would buy it again -- but NOT if I hadn't sold any because then I would have too much.

I run Action Alerts PLUS to help you understand how I think, not just to make the trade. I would have liked nothing better than to "get in shape" for the next run down for Phelps Dodge by letting some go.

Do I like the stock? Of course. Do I like it as much at $67 as $60? You have to be kidding me if you're asking that. Of course I don't. It is more expensive at $67 than at $60.

Enough said.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long Phelps Dodge.