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It's the start of a brand new week, but today's trading action picked up right where most of the trading days have in the past couple of weeks, with large losses. Most reports out today said that the holiday shopping season got off to a good start on Black Friday, but investors focused on continued credit worries. The Dow, which traded higher by about 50 points early in the day, closed the session lower by 237 points. The Nasdaq lost 56 points. The broadest index, the S&P 500 was hit the hardest, losing 33.48 points.

The financials once again were the leaders to the downside today. Wells Fargo and Company (NYSE:WFC), which has escaped the worst of the selling pressure to date, was hit hard today, losing 4.38%. Wachovia Corporation (NYSE:WB) closed lower by 4.82%. Merrill Lynch and Company (NYSE:MER) fell 4.31% as the entire brokerage sector plunged lower on the day. Interestingly, some of the insurance stocks which had been spared the brunt of the selloff were crushed today. Prudential Financial (NYSE:PRU) lost 4.7% on heavier than average volume. Aflac Inc. (NYSE:AFL) shares lost 4.93% today.

Retail stocks were another major loser on the day as investors ignored positive turnout reports from Black Friday and worried about a possible recession which could severely harm the retail group. Macy's Inc. (NYSE:M) plunged lower by 6.06% to lead the major department stores lower. The TJX Companies (NYSE:TJX) fell 4.31%. Specialty retailer Bed Bath and Beyond (Nasdaq:BBBY) fell 4.34% and hit a new 52 week low. Guess Inc. (NYSE:GES), which had outperformed its peers in the apparel group until recently, lost another 6.29% today.

Notable stocks hitting 52 week lows today

• The Home Depot (NYSE:HD) Lost 5.04% on the day. HD shares have steadily fallen for the past year or so.
• American Express (NYSE:AXP) Stock fell 3.76% on the day to hit a new low, but hasn't fallen as much as most financials.
• Huntington Bancshares Inc. (Nasdaq:HBAN) This midwest regional bank plunged 7.21% on the day to a new low.
• Monster Worldwide (Nasdaq:MNST) MNST fell 4.42% as investors bet against a strong job market in the near future.
• KB Home (NYSE:KBH) Shares plunged by 9.41% to another new low today after an analyst downgrade of the housing sector.

The volume was very light on the exchanges today as apparently some traders and investors were still away from the recent Thanksgiving holiday. The internals of the market were horrible once again today as new lows outpaced new highs 340 to 45 on the NYSE. About 75% of stocks on the NYSE and Nasdaq finished the day lower and the down volume accounted for about 85% of the overall volume.

I have to admit, this is a very scary market right now. There are plenty on wall street who are concerned that this may not be another buying opportunity in a bull market, but rather be the beginning of a bear market. I have continued to keep my portfolios at a much higher cash position than usual because of my worries about the market. I have been putting together a list of names that I believe are undervalued, but am waiting on a catalyst to pull the trigger on some of them. For the long-term investor there are certainly some bargains out there, but there may be some significant pain still on the near term.

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