Things need to go very right for stocks to go higher, Jim Cramer told his Mad Money viewers Wednesday. But unfortunately, that puts us on very shaky ground.

Cramer reminded viewers that every meaningful move higher in the market always includes one important sector, the financials. After the election the financials rallied hard, in part because Hillary Clinton was seen as anti-banking, and also because Trump promised deregulation which would have spurred economic growth.

But since the election, Congress has been mired in health care and not tax reforms or repatriation. This has caused us to lose the leadership of the banks. Business are again getting nervous about what changes are coming.

As if that weren't bad enough, foreign affairs have become an issue for the markets. "America First" has suddenly become all about Russia, Syria and North Korea. Will Trump need to make concessions to China to reel in North Korea? If so, then the industrials and materials stocks are correct in heading lower.

All of these issues, including the possibility of a border tax that could crush the retail sector, are putting the markets on very shaky ground, Cramer concluded. Everything must go perfectly to maintain current levels, he said, and that may be tricky.

Meanwhile, on Real Money, Cramer knows what else is ailing this market: too much supply. Read more about his analysis and strategies; get a free trial subscription to Real Money.

Incyte

Cancer immunotherapy is hardly an undiscovered area, but there is one player in the market, Incyte (INCY) , that is hitting it out of the park.

Shares of Incyte are up 80% over the past 12 months, and for good reason, Cramer said. The company's main drug, Jakafi, has already raked in $1.4 billion. But Incyte is a lot more than a one-drug wonder. It also has a robust pipeline that many of the big pharma players would love to get their hands on.

Cramer never recommends a company on takeover speculation alone. It must also have solid fundamentals -- something that Incyte has in spades. Based on that, Cramer said, he'd pay up to $200 a share for Inctye's great story and terrific fundamentals.

The company has an arthritis drug due up for approval next week and also has another round of clinical data due in early June. He did caution that Incyte has filed for a secondary offering, which may be the perfect entry point when those shares come to market.

Chipmakers' Gains: It's Never Enough  

Sometimes the market turns on its leaders. That's certainly been the case with chipmakers AMD (AMD) and Nvidia (NVDA) , which are up an astounding 171% and 362% respectively over the past 12 months.

To understand the sudden decline in both these stocks, you must first understand the mechanics of money management. If there's one thing money managers hate, it's turning a big gain into less of a big gain, Cramer said.

That's why when the analysts began to fret about AMD and Nvidia's valuation, the big money started heading for cheaper semiconductor makers.

At the same time, the cellphone related chipmakers, like Skyworks Solutions (SWKS) and Broadcom (BRCM) , which had been stifled by a slowing Apple (AAPL) , suddenly sprang to life as Apple began gaining momentum.

Of the group, Cramer said he still likes Broadcom for its diversity and also Intel (INTC) for its recent acquisition on Mobileye. He also said you can't go wrong with semiconductor equipment makers like LAM Research (LRCX) and KLA-Tencor (KLAC) .

Executive Decision: International Flavors & Fragrances

For his "Executive Decision" segment, Cramer again sat down with Andreas Fibig, chairman and CEO of International Flavors & Fragrances (IFF) , a company driven by innovation.

Fibig described his business as both art and science. He brought Cramer a grapefruit gin fizz drink that tasted like grapefruit but contains no grapefruit. Grapefruits, it turns out, are in short supply due to disease, which has led IFF to develop a grapefruit flavoring that is sustainable and natural. Similar flavors are being developed for orange, vanilla and other high-demand commodities.

Fibig said that one of their research facilities is perfecting a vegetarian pastrami that is delicious.

Beyond flavors, IFF is also expanding into cosmetic additives, a category that is already 8% of the company's total sales.

Cramer said the he continues to love the IFF story.

Lightning Round

In the Lightning Round, Cramer was bullish on Camping World (CWH) , Scotts Miracle-Gro (SMG) , AMN Healthcare Services (AMN) , SemGroup (SEMG) and AMC Networks (AMCX) .

Cramer was bearish on Mylan Laboratories (MYL) .

No-Huddle Offense

In his "No-Huddle Offense" segment, Cramer said crude oil is at a crossroads and isn't likely to be able to push through this ceiling of resistance.

The problem? U.S. oil producers, especially those in the Permian Basin, can make huge profits, even at current prices, so they're pumping like mad. That's why Cramer said it's time to trim your oil exposure.

But that doesn't mean there aren't any ways to make money with oil. Cramer said that the biggest winners from the Trump trade are the oil pipelines and MLPs, like Magellan Midstream Partners (MMP) , an Action Alerts PLUS holding. Cramer said deregulation will mean all of the pipeline companies will be able to make more money, and faster, than anyone expected.

Cramer and the AAP team update their investment club members on how their holdings are doing, including Southwest (LUV) and PepsiCo (PEP) . Get in on the discussion by getting a free trial subscription to Action Alerts PLUS.

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

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At the time of publication, Cramer's Action Alerts PLUS had positions in LUV, AAPL, PEP.

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