Jim Cramer says the market rotation isn’t all about small caps [Video]

CNBC’s Jim Cramer said Monday the recent reshuffling on Wall Street is about more than a resurgence in small-cap stocks.

“This market is not experiencing a small-cap rally, it’s experiencing a rally in everything else but the tech titans. The mega caps have become what we call ‘share donors’ for virtually every other stock in the market,” he said. “It’s not a rotation at all. It’s the great broadening, and we have to embrace it as bullish, not bearish, except for the big cap techs that report this week.”

Cramer suggested the market isn’t being led solely by a few smaller-cap companies that are performing well. Instead, he said, large institutions may be buying poor quality small stocks “as part of a larger basket” with indexes like the Russell 2000 or the S&P Small Cap 600. When buying an index, Cramer said it’s necessary “to take the good with the bad.”

This is “not …