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) - Get Caterpillar Inc. Report . 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) - Get ABIOMED, Inc. Report , Nvidia (NVDA) - Get NVIDIA Corporation Report , Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report and the most obvious stock of all, Amazon (AMZN) - Get Amazon.com, Inc. Report . These stocks rose 892%, 722%, 706% and 490% respectively -- remarkable runs made by remarkable companies.

Continuing the top 10 were MarketAxess (MKTX) - Get MarketAxess Holdings Inc. (MKTX) Report , Take-Two Interactive (TTWO) - Get Take-Two Interactive Software, Inc. Report and MSCI (MSCI) - Get MSCI Inc. Class A Report , another trio of innovators in their respective markets.

They are followed by Align Technologies (ALGN) - Get Align Technology, Inc. Report , which continues to break the mold in orthodontics. And last on the list was Global Payments (GPN) - Get Global Payments Inc. (GPN) Report , 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) - Get Tradeweb Markets, Inc. Class A Report , Pinterest (PINS) - Get Pinterest, Inc. Class A Report and Revolve (RVLV) - Get Revolve Group, Inc Class A Report remain his favorites. He remained concerned about the prospects for Uber (UBER) - Get Uber Technologies, Inc. Report and Lyft (LYFT) - Get Lyft Inc Class A Report , and said Beyond Meat (BYND) - Get Beyond Meat, Inc. Report 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. 

TheStreet Recommends

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) - Get CareDx, Inc. Report , 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) - Get ORBCOMM Inc. Report has been a laggard and has a spotty track record without any profits. He recommended Zebra Technologies (ZBRA) - Get Zebra Technologies (ZBRA) Report .

Finally, Cramer said to wait to by database software provider Elastic (ESTC) - Get Elastic NV Report , but suggested Twilio (TWLO) - Get Twilio, Inc. Class A Report in the interim.

Too Much Denim?

In his "No-Huddle Offense" segment, Cramer opined on today's 12% decline in Levi's (LEVI) - Get Levi Strauss & Co. Class A Report 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) - Get Amarin Corporation Plc Sponsored ADR Report , MPLX (MPLX) - Get MPLX LP Report , GW Pharmaceuticals (GWPH) - Get GW Pharmaceuticals PLC Sponsored ADR Report , United Parcel Service (UPS) - Get United Parcel Service, Inc. Class B Report and Planet Fitness (PLNT) - Get Planet Fitness, Inc. Class A Report .

Cramer was bearish on Zynerba Pharmaceuticals (ZYNE) - Get Zynerba Pharmaceuticals Inc Report , Schneider National (SNDR) - Get Schneider National, Inc. Class B Report and Allergan (AGN) - Get Allergan plc Report .

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