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EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stock Under $10 that he thinks could potentially double or triple in the next 6 to 12-months. See what he's trading today with a 14-day FREE pass.

Cramer: I Bet It Was One Big Seller

NEW YORK (Real Money) -- So, yesterday, the Russell index had its worse day since April 25 when it fell 1.86%. What does it all mean? Is it a sign that Janet Yellen is having second thoughts about easy money now that a bunch of firms have come out and said that rates are going to go higher sooner? Is it a sign that the market's gotten overheated and we are at a top right when earnings season is about to begin, a sure sign of pain ahead? Is this the beginning of the end of the big cloud bounce-back, right when the right shoulder says it should be forming?

Or is it because some large account liquidated its Russell 2000 positions and we all had to pay the price?

I bet it is the latter.

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We have to accept that the volume in actual stocks away from exchange-traded funds is simply fractional. A motivated seller without a lot of horse sense, someone who hasn't been in the game long enough to know that you can liquidate slowly, or, alternatively, someone with little to no patience can wreck this tape lickety-split.

Think back to the horrendous momentum selloff that started at the end of February. That was all about supply overwhelming demand and all deals failed, even the good ones, although most were, indeed, bad ones.

Then we got the resurrection that began when the insider selling ended, the shorts pressed their bets and the IPOs simply disappeared. Oh, and of course, the takeovers decreased supply.

Since then we have seen good deals resurface: Arista Networks (ANET) and JD.com (JD) come to mind.

But for the most part this last move occurred in a nonearnings-related vacuum.

I think that other than biotech, which actually broke to new highs, we are looking at some hedge funds saying now, today, "This is our chance, because there's a big seller in the marketplace and we can run ahead of him."

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