Power stocks lost their juice a couple of months ago but have surged back since then. The energy sector ended last week just 7.9% overvalued, with public utilities only 6.1% overvalued, a far cry from their Oct. 25 overvalued levels of 17.2% and 11.5%, respectively. It's high time to update my profiles for energy stocks and public utilities.

The Energy Select SPDRs ( XLE) declined 17.8% from the high of $54.65 on Sept. 22 to the low of $44.94 into Oct. 20, and has been consolidating in this range since then. The XLE is 9.6% undervalued, with fair value at $56.64. The weekly chart profile is positive, with the five-week modified moving average at $49.97. I show a monthly value level at $49.45 with a monthly pivot at $51.91. If XLE moves above $51.91, the upside for a trade is to my quarterly risky level at $54.68.

Meanwhile, the Dow Utility Average stands at 403.03, having declined 13.6% from its all-time high of 438.74 set on Oct. 4 to a low of 378.95 on Oct. 20. The Utility Average has been above its 200-day simple moving average since mid-April 2003, which was last tested on May 12, 2004. Therefore, a trend below the 200-day SMA at 384.86 would be a sign that the utilities' bubble has broken. The rebound for utilities would continue, given a close this week above the five-week MMA at 400.30, because that would shift the weekly chart profile to positive, indicating a rebound to my quarterly resistance at 430.69 and monthly resistance at 433.17.

Three of the four stocks in the energy and public utilities sectors that I identified in late October as cheap stocks on the group's weakness -- those that were at least 40% undervalued -- would not satisfy that scan now.

El Paso ( EP) closed at $12.13 on Oct. 25, when it was a whopping 49% undervalued, and traded as low as $10.76 on Nov. 30. Now shares are just 15.5% undervalued, pulling fair value down to $13.44 from $22.43. The weekly chart profile remains negative with the five-week modified moving average now at $11.69. On Oct. 25 I indicated that buyers should emerge at my quarterly value level at $11.05; shares drifted below that key level, but have since rebounded. Holding $11.05 indicates potential strength to my monthly risky level at $12.35. Investors looking to buy additional weakness should consider doing so at my monthly value level, $10.51. I would liquidate all trades on strength to my quarterly risky level at $13.29.

Similarly, Valero Energy ( VLO) has gone from being 42.6% undervalued on Oct. 25, when it closed at $101.05, to just 14.9% undervalued now. It did trade as low as $94.60 on Oct 28. The rebound has pulled fair value down to $119.81 from $164.95. The weekly chart profile shifted to neutral with Friday's close above the five-week MMA at $101.65. Shares did not weaken to my quarterly value level at $84.08. If $101.65 holds, there is a potential trade to my quarterly pivot at $103.98, with my monthly risky levels above at $105.05 and $108.12.

National Fuel Gas ( NFG) closed at $31.07 on Oct 25., when it was 41.4% undervalued. It traded as low as $29.25 on Nov. 11, but the 200-day simple moving average held. This is the only stock of this quartet that is more undervalued now than when I last wrote about it; at 46.0% undervalued, its fair value is now $60.32, up from $51.39. The weekly chart profile was negative on Oct. 25, but shifted to positive from $31.61 on Nov. 18 with the five-week MMA at $31.46. Shares stayed above my quarterly value level at $28.45 and now are above monthly pivots at $32.19 and $31.64, which indicates upside to my quarterly risky level at $34.17. If National Fuel were to reach that level, traders would want to book profits.

Quicksilver Resources ( KWK) closed at $38.59 on Oct. 25 and traded as low as $32.97 on Nov. 8, just above my semiannual value level at $32.52. Shares were 40.3% undervalued and are now only 7.9% undervalued, pulling fair value down to $43.70 from $60.76. The weekly chart profile was negative, but shifted to positive from $40.36 on Nov. 25. Quicksilver opened this session above my quarterly pivot at $41.65, which indicates it has the potential to move up to my monthly risky levels at $45.54 and $47.43. If it does reach those levels, traders should look to book profits.
Richard Suttmeier is president of Global Market Consultants, Ltd., chief market strategist for Joseph Stevens & Co., a full service brokerage firm located in Lower Manhattan, and the author of TheStreet.com Technology Report newsletter. At the time of publication, he had no positions in any of the securities mentioned in this column, but holdings can change at any time. Early in his career, Suttmeier became the first U.S. Treasury bond trader at Bache. He later began the government bond division at L. F. Rothschild. Suttmeier went on to form Global Market Consultants as an independent third-party research provider, producing reports covering the technicals of the U.S. capital markets. He also has been U.S. Treasury strategist for Smith Barney and chief financial strategist for William R. Hough. Suttmeier holds a bachelor's degree from the Georgia Institute of Technology and a master's degree from Polytechnic University. Under no circumstances does the information in this commentary represent a recommendation to buy or sell stocks. While he cannot provide investment advice or recommendations, he invites you to send your feedback -- click here to send him an email.