US Markets

Jim Cramer: 3 things that could send stocks lower

SOTS market roadmap: Cramer warned you
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SOTS market roadmap: Cramer warned you

Between insider selling, the initial public offering deluge and low expectations for first-quarter earnings, the stock market could face downward pressure this week, CNBC's Jim Cramer said Monday.

"The market can't absorb all these IPOs and it can't absorb all this insider selling. Just can't. There's not enough cash around," Cramer said on "Squawk on the Street."

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Cramer thinks there's a lot of insider selling happening now, though he didn't point to any specific examples. Insider selling refers to employees at public companies who choose to sell their shares of the company stock.

Pisani's market open: IPO parade intensifies
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Pisani's market open: IPO parade intensifies

As far as initial public offerings go, 16 companies are expected to go public this week, making it the busiest IPO week since December 2006. The largest filings will likely include hotel operator LaQuinta Holdings and financial institution Ally Financial at $725 million and $2.5 billion respectively. Restaurant chain Zoe's Kitchen, cloud-based payroll manager Paycom Software and China medical exam center operator iKang Healthcare are among the companies thought to go public this week.

To Cramer, some of these companies might be worth investing in. For the most part, though, he thinks the recent IPO market largely feels frothy and without much skepticism.

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But quarterly earnings reports will get the bulk of attention on Wall Street this week. Earnings season unofficially begins after Tuesday's closing bell, with aluminum producer Alcoa slated to release results. Financial institutions JPMorgan Chase and Wells Fargo are also expected to report this week, as well as home furnishings retailer Bed, Bath & Beyond.

Generally speaking, earnings expectations are low, but Cramer said that might not be a bad thing for investors.

"I think that helps when you're trying to get into something because when the expectations are this low, you tend not to get hurt," Cramer said.

—By CNBC's Drew Sandholm.