Does the stock market have what it takes to keep powering higher, despite the Fed, trade and Iran? That was the question Jim Cramer explored with his Mad Money viewers Thursday, as he looked at the best performers in the Dow Jones Industrial Average to see whether this amazing rally is sustainable.

Leading the Dow was Microsoft (MSFT) - Get Report , an Action Alerts PLUS holding with shares up 35% for the year. Cramer said this stock has gotten ahead of itself. Cramer was bullish on the second-best performer, Cisco Systems (CSCO) - Get Report , which trades at just 17 times earnings. When it came to Visa (V) - Get Report , Cramer said he prefers American Express (AXP) - Get Report , which happens to be No. 4 on the list.

Cramer said investors are late to the party with Walt Disney (DIS) - Get Report , but he was still a fan of Travelers (TRV) - Get Report and Apple (AAPL) - Get Report . Cramer was bullish on Home Depot (HD) - Get Report , which trades at 19 times earnings. He suggested waiting for a pullback, however.

Rounding out the top 10 were IBM (IBM) - Get Report and Procter & Gamble (PG) - Get Report . Cramer was a fan of both stocks as IBM has a 4.7% dividend yield and Procter, up 20% for the year, is a go-to name for investors worried about a slowdown. 

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. 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.

Red Hot or Too Hot 

When stocks have parabolic moves to the upside, someone always gets hurt, Cramer reminded viewers. Back in 1999 and into 2000, Cramer recalled his list of "red-hots," telecom and Internet stocks that seemed to defy gravity day after day. All of these names stayed red hot, until March of 2000 when they suddenly weren't.

Today, we see another crop of red-hot stocks. Stocks like BeyondMeat (BYND) - Get Report , Revolve (RVLV) - Get Report , Zoom Meetings (ZM) - Get Report and today's debut of Slack (WORK) - Get Report , are all stocks which continue to soar higher, seemingly with no end in sight.

But these stocks too will eventually roll over, Cramer cautioned, and they often do so with no warning. Before you invest in any of these companies, make sure you know what you own, know why you own it and be sure you can explain what the company does to others.

Executive Decision: Caterpillar

For his "Executive Decision" segment, Cramer sat down with Jim Umpleby, chairman and CEO of Caterpillar (CAT) - Get Report , the construction equipment maker that had been written off by investors who feared tariffs, even though only 10% of the company's sale stems from China. Last month, Caterpillar raised their dividend by 20%.

Umpleby explained that after being in business for over 94 years, Caterpillar knows how to navigate trade disputes. The company committed itself to a profitable growth plan in 2017 and has been executing on that plan ever since. For example, Caterpillar has improved gross margins from 11% in 2014 to 16% in 2018.

Umpleby said Caterpillar is investing for the long haul, allocating resources to the areas with the most future growth. Their services revenue is expected to double over the next 10 years, as the company grows its fleet of over 850,000 connected machines.

Autonomous cars may garner all of the headlines, Umpleby noted, but Caterpillar has 11 mining sites around the world that are using autonomous mining vehicles that are operating 24 hours a day.

Caterpillar is also a major player in the oil and gas market, making not only construction equipment, but also pumps and compressors that help keep America's oil and gas flowing. 

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Executive Decision: MongoDB

In his second "Executive Decision" segment, Cramer welcomed back Dev Ittycheria, president CEO of MongoDB (MDB) - Get Report , to the show for an update. Shares of MongoDB are up 440% since their October 2017 debut.

Ittycheria explained that every application has a database behind it and increasingly, that database is MongoDB. He said unlike databases like Oracle (ORCL) - Get Report , which was originally designed in the 1970s, MongoDB was built for today's world and is highly scalable and distributed.

Oracle was designed before the cloud, before the web and before the Internet, Ittycheria said, which explains why Oracle is seeing 1% revenue growth compared to MongoDB at 80%.

MongoDB has 14,000 customers around the globe in a host of industries including telecom, media, gaming and financial services. Every company is becoming a software company, Ittycheria said, and more services means more data and more MongoDB. 

Am I Diversified? 

In the "Am I Diversified" segment, Cramer spoke with audience members to see if their portfolios have what it takes for today's volatile markets.

The first portfolio included Microsoft, Alphabet (GOOGL) - Get Report , Twillio (TWLO) - Get Report , Canopy Growth (CGC) - Get Report and Viacom (VIA.B) .

Cramer said this portfolio had too much technology and needed to add a healthcare stock.

The second portfolio's top holdings included Microsoft, Cisco Systems, Ford (F) - Get Report , ExxonMobil (XOM) - Get Report and Carrizo Oil & Gas (CRZO) - Get Report .

Cramer said this portfolio had too much exposure to oil and gas also needed a healthcare stock. 

Lightning Round

In the Lightning Round, Cramer was bullish on TransDigm Group (TDG) - Get Report , Lockheed Martin (LMT) - Get Report , Amarin (AMRN) - Get Report , Bristol-Myers Squibb (BMY) - Get Report , HP (HPQ) - Get Report , Johnson & Johnson (JNJ) - Get Report , Mercadolibre (MELI) - Get Report and Bausch Health (BHC) - Get Report .

Cramer was bearish on ArcelorMittal (MT) - Get Report , Nucor (NUE) - Get Report , PPL Corp (PPL) - Get Report , McKesson (MCK) - Get Report , B&G Foods (BGS) - Get Report , Zynga (ZNGA) - Get Report , America Movil (AMX) - Get Report and America Movil (AMX) - Get Report .

Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in MSFT, CSCO, DIS, AAPL, HD, JNJ, GOOGL, TWLO.