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Stock Market Today With Jim Cramer: Russell Rebalance and Meme-Stock Shorts

Jim Cramer has a bit of important advice for investors who are short the meme stocks. He also leans toward Ethereum over Bitcoin.
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Stocks on Wednesday edged higher as Federal Reserve Chairman Jerome Powell said a spike in inflation likely was temporary, easing worries that the central bank could soon pull back on economic support.

As Russell Rebalances, Jim Cramer Warns Meme-Stock Holders

Jim Cramer noted that the coming Russell Index rebalance may affect a number of the meme stocks. He has a bit of important advice for anyone who is short those equities. 

Investors are "beginning to see signs of what could be an important rebalancing on Friday. We got to focus on that. 

"If you remember the big decline last Friday - another index was being rebalanced and put a lot of pressure on the market.  

"This time it's going to be the Russell. And I think there are a lot of meme stocks that have been inflated since the last time we had a Russell rebalancing. And that means you want to go very lightly if you're short a stock like Clover  (CLOV) - Get Report, 34% shorted. ...

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"The meme stocks tend not to care about the actual fundamentals as much as they care about busting the shorts," Cramer said.

Why Jim Cramer Is Leaning Toward Ethereum Instead of Bitcoin

Bitcoin is rebounding. But it is also in the crosshairs of regulators in China. 

Jim Cramer is wary, or, as he puts it, "Bitcoin is much more a front-and-center issue in China, and I just want to avoid anything that's on the other side of the PRC.  

"I have not been very positive on the actions of the PRC, obviously, but I do think the people of China are terrific. I just feel like the government is in crackdown mode. ..."