NEW YORK (TheStreet) -- TheStreet's Jim Cramer said he's watching for further developments out of Greece and China.
Cramer said he believes that this weekend is when we'll find out whether Greece is in or out of the eurozone. He said even just a resolution of the situation would be positive. Cramer is telling investors to watch Guggenheim's CurrencyShares Euro Trust(FXE) - Get Report, the exchange-traded fund that measures the strength of the U.S. dollar versus the euro. He said we need to see the FXE go higher because that means the dollar gets weaker. If that happens and we get any sort of resolution out of Greece, then the U.S. stock market could go higher.
Greece faces its next deadline on Sunday for either reaching a debt bailout deal or risk an exit from the 19-nation eurozone.
Moving on to China, Cramer said that "understand when they criminalize some selling, when they literally make it so that the police are going to go after you and they make it so that the big blocks of stock can't be sold, you're actually going to get real buyers."
Cramer added that some Americans have bought Chinese stocks that look like American stocks such as Baidu(BIDU) - Get Report. Cramer said he does not trust the Chinese market and feels we've gotten linked to China in a terrible way, saying, "The moment that China started trading up last night, the S&P futures traded up. This is a treacherous thing. We don't want to be levered to China, we don't want to be levered to Europe."
He stressed that only a couple of American companies really have some possible negative exposure to China, where stocks are down more than 30% since early June.
This article was written by a staff member of TheStreet.