In today's Traders Exclusive update, George Tkaczuk provides an equity market overview and offers up three new potential trading setups. The Russell 2,000 is lagging the major indexes at this juncture, which is important to note because the small caps were the first group to correct and the first group to bottom in September and October. The 1,183 level will be a key pivot area for the Russell 2,000. Leading sectors of the market include medical, semiconductors, certain areas of retail, and transports. Within medical, there are three biotech stocks of note which might have significant upside. A word of caution, in that these stocks currently have no earnings and their valuations are contingent on the approval of blockbuster drugs. Acadia Pharmaceuticals (ACAD) is one with a promising Alzheimer's drug in the pipeline, and the stock is ready to breakout to new highs. $29-30 is a key level to look to accumulate. ZS Pharma (ZSPH) has a drug for hyperkalemia and the $43 level looks to be an entry. Finally, Opthotech (OPHT) is developing a drug for macular degeneration with very favorable results, and the stock is breaking out at the $44-46 level.

More from Video

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Replay: Jim Cramer on the Markets, 10-Year Yield, Oil Prices and Foot Locker

Video: You Could Live in a Ritz-Carlton or St. Regis Home

Video: You Could Live in a Ritz-Carlton or St. Regis Home

KPMG Chair & CEO: There's No One-Size-Fits-All Approach to Diversity

KPMG Chair & CEO: There's No One-Size-Fits-All Approach to Diversity

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Best Buy's Billionaire Founder: We Were 'Late to the Game' in Online Shopping

Jim Cramer: Intuit Had a Fantastic Quarter

Jim Cramer: Intuit Had a Fantastic Quarter