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Bubbles are for the bathtub, Jim Cramer reminded his Mad Money viewers Wednesday, as he sounded off on the naysayers who claim the market's rally exists only because of the Federal Reserve. Cramer said the dollars made in the stock market are for real and they're spectacular.

Investors should be happy the Fed is willing to reverse course and potentially cut rates as early as this month, Cramer explained. We want a Fed that is data-dependent and paying close attention to what's happening. That kind of attention to the data is exactly what the stock market needs.

Cramer said there are a number of reasons stocks are hitting new highs outside of the Fed. Foreign investors have been flocking to U.S. stocks, and U.S. investors have been choosing stocks over bonds, because they're the best long-term investment out there. Investors are also getting back into stocks, as they typically do when times are good and the economy is strong.

But even with stocks making new highs, Cramer said there's still money to be made by investing in high-quality companies when their stocks are at attractive prices. 

Cramer and the AAP team are redeploying some cash to one of their recent initiations, Caterpillar (CAT) . Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Gains for the S&P 500 

The S&P 500 has had a remarkable run over the past five years, rising from 2,000 to topping 3,000 today. But despite what the naysayers will tell you, this rally was not built by solely the Federal Reserve, it was built on the innovation and ingenuity of great companies.

Among the top 10 best performing stocks in the S&P over the past five years were Abiomed (ABMD) , Nvidia (NVDA) , Advanced Micro Devices (AMD) and the most obvious stock of all, Amazon (AMZN) . These stocks rose 892%, 722%, 706% and 490% respectively -- remarkable runs made by remarkable companies.

Continuing the top 10 were MarketAxess (MKTX) , Take-Two Interactive (TTWO) and MSCI (MSCI) , another trio of innovators in their respective markets.

They are followed by Align Technologies (ALGN) , which continues to break the mold in orthodontics. And last on the list was Global Payments (GPN) , a member of the red-hot financial technology sector that's revolutionizing finance. Global Payments has rallied 352% over the past five years.

So Many IPOs

It may be hard to believe, but there have been 62 IPOs so far this year and Cramer felt it was time to do a quick round-up of what's been working and what hasn't.

Cramer's highlighted 13 IPOs on Mad Money and of those, he said, TradeWeb (TW) , Pinterest (PINS) and Revolve (RVLV) remain his favorites. He remained concerned about the prospects for Uber (UBER) and Lyft (LYFT) , and said Beyond Meat (BYND) continue to act like a cult stock.

For many of these recent IPOs, Cramer said shares simply remain too expensive to recommend. He said there's a chance the market will pullback and give investors a good entry point. But if not, sometimes discipline means admitting you missed a good one. 

Cramer Does His Homework 

In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows. He said that he likes the story at CareDX (CDNA) , the transplant diagnostics company, but after rallying 212% over the past 12 months, investors need to wait for a pullback in this speculative stock.

Cramer felt that Orbcomm (ORBC) has been a laggard and has a spotty track record without any profits. He recommended Zebra Technologies (ZBRA) .

Finally, Cramer said to wait to by database software provider Elastic (ESTC) , but suggested Twilio (TWLO) in the interim.

Too Much Denim?

In his "No-Huddle Offense" segment, Cramer opined on today's 12% decline in Levi's (LEVI) after the company reported lackluster results and with hideous guidance.

Levi's was well received on its IPO earlier this year, Cramer noted, but just months later the company is now seeing declines in its wholesale business due to bankruptcies and store closures at many retailers. The fact is that retail continues to be under attack from many fronts, including Amazon. Cramer said shares never should have traded for 22 times earnings and the share price must fall to meet the new reality. 

On Real Money, Cramer says it looks like America is overrun with denim right now. Get more of his insights with a free trial subscription to Real Money.

Lightning Round

In the Lightning Round, Cramer was bullish on Amarin (AMRN) , MPLX (MPLX) , GW Pharmaceuticals (GWPH) , United Parcel Service (UPS) and Planet Fitness (PLNT) .

Cramer was bearish on Zynerba Pharmaceuticals (ZYNE) , Schneider National (SNDR) and Allergan (AGN) .

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At the time of publication, Cramer's Action Alerts PLUS had a position in CAT,NVDA, AMZN, TWLO.