Jim Cramer Explains GameStop Short Squeeze, What It Says About Stock Market Monday

In Monday's stock market breakdown, Jim Cramer explains the action in GameStop stock and what it could be signaling to the market at large.

And it's Monday.

Stocks are mixed in intraday trading on Monday as investors look to see if President Biden can deliver another stimulus package that promises another round of stimulus checks to Americans.

During his daily interview with TheStreet Live, Jim Cramer noted an "amazing transition on the fly out of value and into select tech and healthcare, but not much more beyond that."

But the monumental move in GameStop and its implications for Wall Street continued to dominate Cramer's attention Monday.  

Jim Cramer and Katherine Ross talk GameStop  (GME) - Get Report, Moderna  (MRNA) - Get Report, Apple  (AAPL) - Get Reportand more: 

"This is one of the most amazing short squeezes...This is one of the wonders of the world," Cramer said when discussing GameStop. 

"Oddly ["For What It's Worth" by Buffalo Springfield] might be an anthem for the younger investors who have flooded the Wall Street Bets site with positive commentary about GameStop (GME) , the long-in-decline brick and mortar store that has been the target of perpetual shorts all the way down from $47 five years ago to $4 in 2020," Cramer wrote in his Real Money column on Monday morning

"I think the stock has gotten overvalued, and the insider selling has been pretty aggressive. I also think that one could argue that Cohen is a miracle worker and if the company were to take advantage of the stock's new height and sold stock it could actually reinvent itself in a solid way," Cramer continued.

"If you’re short this stock, you have to ask, am I going to be in business," Cramer said. 

Cramer warned the action in GameStop could have repercussions for other popular shorts including B&G Foods  (BGS) - Get Report, Bed Bath & Beyond  (BBBY) - Get Report and Clorox  (CLX) - Get Report

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. 

Latest Videos From TheStreet and Jim Cramer: