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Reducing Exposure

This mining play has significant short-term headwinds, so I'm trimming my position.
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I am going to sell 400 shares of Freeport-McMoRan (FCX) today. I know the stock is down, but the momentum is too strong to fight right now and I want to reduce my weighting in the near term.

I believe the shares could trade lower on the continued concerns about the worldwide economies slowing despite the fact that the long-term fundamentals are strong. If shares get to the mid-$70s, I'll likely buy more, especially since the valuation is very cheap at 7 times forward earnings. But investors are unwilling to look at the fundamentals or the cheap valuation. So I will reduce my position and wait for a cheaper price to buy again. The supply/demand situation remains very solid, and it makes sense to be patient. In the short term, my other stocks in the fund have more upside, and I will continue to add to them.

After my sale, I will own 1,000 shares of FCX, or 2.63% of the portfolio.

Regards,

Jim Cramer

Click here to trade alongside Cramer!http://www.thestreet.com/staticFull/aap-td-ct-offer_alert.html

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

Send email to james.cramer@thestreet.com.