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Jim Cramer Says Market Is Dominated by Regulatory Risk Monday

In Monday's stock market breakdown, Jim Cramer returns to talk GameStop, Tesla, Exxon, Chevron, silver, Robinhood, stimulus and more.

It's Monday, Feb. 1.

But I do have some good news--Jim Cramer is back. And he's ready to focus on GameStop and Robinhood, which of course are going to be the dominating stories this week. 

So, let's take a look at GameStop  (GME) - Get GameStop Corporation Report. In morning trading, the stock was halted after dropping upwards of 20% and continued to head lower after reopening for trading. 

Cramer said though he remains impressed by the rise of the retail trader, GameStop doesn't have the fundamentals or the publicized turnaround plan to back up the surge in the stock. 

"You have a lot of people making decisions that are material to their lives on material information that only GameStop has," Cramer said. 

In Monday's stock market breakdown, Jim Cramer returns to talk GameStop, silver, Robinhood, Tesla  (TSLA) - Get Tesla Inc. Report, Lowe's  (LOW) - Get Lowe's Companies Inc. Report, Exxon  (XOM) - Get Exxon Mobil Corporation Report, Chevron  (CVX) - Get Chevron Corporation Report, AMC, Bed, Bath & Beyond  (BBBY) - Get Bed Bath & Beyond Inc. Report and more: 

Following Friday's decision to restrict a list of 50 stocks, Robinhood has now walked back most of the names and reduced the list of restricted stock to eight stocks. 

Opening new positions in GameStop, AMC Entertainment, BlackBerry (BB) - Get Report, Express (EXPR) - Get Report, Genius Brands (GNUS) - Get Report, Koss Corp. (KOSS) - Get Report, Naked Brand (NAKD) - Get Report and Nokia (NOK) - Get Report on Monday will be limited, Robinhood said on its website.

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Discussing capital requirements, Jim Cramer said, "I want Robinhood to make free and fair markets...It's not up to Vlad [CEO] as it is up to regulators."

Cramer added that it's important to recognize the level of risk the rise of the Redd

And now investors are eyeing silver as the next short-squeeze. 

The scope for a short squeeze in silver is less obvious, with money managers having had a net-long position on silver since mid-2019, Bloomberg reported, citing futures and options data from the Commodity Futures Trading Commission.

Though Cramer said he won't discourage the excitement, he said silver has a smaller market and is more geared to industrials than more traditional commodities like gold.

 "I've always found that silver is levered to GDP growth, not to precious metals and store of value," Cramer said.

Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.

Daniel Kuhn contributed reporting to this article. 

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