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Market shift could drive further advance: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

Looking at the 65 point gain in the Dow Jones industrial average and the 7 point gain in the S&P 500 on Tuesday, you wouldn't think anything big happened in the stock market. But Cramer insists that it did.

"Despite the market's recent upward momentum, entire sectors and cohorts had been left out of the rally," Cramer said. But that changed on Tuesday. "On Tuesday we got leadership where it didn't exist."

Cramer says that's a big deal.

Adam Jeffery | CNBC

For example, Netflix rallied 7%. That, Cramer says, is a significant gain because Netflix had fallen out of favor as the Street turned its back on highly valued companies without a lot of earnings.

But the latest Netflix earnings report reminded pros that Netflix and similar high multiple stocks warranted investment.

"CEO Reid Hastings and his CFO David Wells told a story of unrelenting growth," Cramer said with the total addressable market over time equaling all human beings that enjoy TV shows and movies. "In other words, their addressable market, long-term, is everyone on earth—roughly 7 billion people," Cramer said.

Pros felt that kind of growth was worth a premium and again buyers gobbled up shares of Netflix and other companies that may be facing similar outsized growth.

But that's only one example of the leadership shift.

Cramer also said the 15% surge in Allergan,after word of a hostile takeover bid, is another example. "It reminded the market of all the value hiding in the health care stocks, again a cohort that had been out of favor.

The Street is now saying, "if some smart investors are willing to pay $45 billion for Allergan, then perhaps some faster-growing biotechs like Jazz or Isis or even Biogen, Celgene, Gilead and Regeneron could be targets, too."

In turn the biotech sector went from being reviled to embraced in a matter of minutes.

Cramer said a similar story is playing out in bank stocks with a tick higher in interest rates sending money into formerly out of favor financials. And, he said, a decline in oil gave beleaguered retailers a boost.

All told, Cramer thinks the market action is telling.

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Sure the Dow Jones industrial average only climbed 65 points while the S&P 500 only edged up 8 points. "But there's been a shift in market sentiment with money flowing into sectors that had been out of favor. That makes the rally a remarkable rally. And when something like this happens it tends to last a bit. If you missed it, don't worry. With entire sectors way down from their highs. I think there are plenty of opportunities left to come."

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