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Closing Out

In this market, shedding positions that will have given us their all for the moment is key.
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The circling of the wagons continues, and the next stock I'm going to pick away at is Halliburton (HAL) . At $69.70, the shares are down 13 straight points since last Thursday. That's just ridiculous, when the demand for oil services and infrastructure shows no signs of slowing down. With that in mind, I'm going to step in and buy 300 shares of Halliburton after you read this. This purchase will boost my stake to 1,800 shares, or 3.3% of the overall portfolio.

As Alcan (AL) continues to slide, it's time to pick up another 200 shares, here around $47.61. The stock is now changing hands at just 10.1 times expected 2006 earnings, which is a discount to its historical average. A correction in the metals is one thing, but what we've seen in Alcan is a whitewashing relative to how strong the underlying demand for aluminum is. This purchase will round up my stake to 5,500 shares, or 6.9% of the total portfolio.

To fund these trades and reload my cash position, I'm going to sell out of my entire Cephalon (CEPH) position, all 1,500 shares. It's nice to have the equivalent of a call option on the Food and Drug Administration's decision about Sparlon in August, but this market has turned into a dogfight. There is no room for that kind of luxury, and those funds will be needed elsewhere in the meantime.

We've known for some time this stock would be dead money, and I only wish I could have sold more Cephalon myself when I started telling you readers to do so 7 points ago. Instead, after you read this note, I will let go of my final 1,500 shares closer to $57.10.

Regards,

James J. Cramer

DISCLOSURE: At the time of publication, Cramer was long Halliburton, Alcan and Cephalon.

Send email to james.cramer@thestreet.com.