What do investors need to be cautious about? Sebastian noted that spikes in the VIX aren't in and of themselves worrisome, unless the index doesn't return to its former lows and stabilizes at higher levels. That's what occurred in early 2007, just as the rally came to an abrupt end.

Sebastian cautioned that the CBOE Russell 2000 Volatility Index, or RVX, is displaying this pattern currently, a spike up followed by a return to higher levels. That's why all eyes are on the VIX to see if it follows suit.

Check the Bloodlines

When it comes to IPOs, a company's bloodlines -- or where its management comes from -- is an important data point, Cramer reminded viewers. But in the case of the newly public Parsley Energy (PE) the term bloodlines takes on a whole new meaning because the company's CEO, Bryan Sheffield, is the son of Pioneer Natural Resources (PXD) CEO Scott Sheffield.

Cramer said while both companies operate mainly in the Permian Basin, Parsley is only a $3 billion company with 100,000 acres compared to the behemoth Pioneer, which is valued at $29 billion and with 825,000 acres in the Permian and more in the Eagle Ford, Barnett and other lucrative shale regions.

When it comes to production growth, however, it's all Parsley. The company is operating from a small base and tripled its production last year to 5,000 barrels a day. Pioneer is also growing like a weed, pumping out 130,000 barrels a day, but it's growth is no longer tripling on an annual basis.

Cramer said both companies have solid balance sheets to fund their operations but Parsley has a slightly lower enterprise value ratio of 8.5 compared to Pioneer's 9.5. However, Cramer said he still prefers Pioneer, given the senior Sheffield's 14 years of experience. He said investors who are looking for a faster-growing, albeit less-tested oil play won't go wrong investing in Parsley.

Executive Decision: Steve Bromley

For his "Executive Decision" segment, Cramer sat down with Steve Bromley, CEO of organic food maker SunOpta (STKL), which just posted a two-cents-a-share earnings beat on 16% organic sales growth. Shares of SunOpta are up 35% so far in 2014.

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