NEW YORK ( TheStreet) -- On May 24 I wrote Defense Stocks Survive Sequester Cuts and since then all nine of the defense stocks I covered then are up. Eight of the stocks are up between 9.1% and 31%. In May only one of the stocks had a buy rating and one had a sell rating with the other seven rated hold. Today the distribution of the ratings is about the same but there are now two sell rated stocks.It's difficult to explain why sequestration spending cuts have not had an adverse affect on the aerospace sector given the fact that the sector has an underweight rating with 64.9% of the 74 stocks in the sector having sell or strong sell ratings. In addition the sector is 24.9% overvalued. What this shows is that my buy-and-trade strategy works even when the fundamentals are not favorable. Positive technicals have trumped weak fundamentals at least between May 23 and Oct. 2. Today all nine aerospace stocks are currently overvalued with eight overvalued by 20.5% and 29.5% and all nine gained between 25.9% and 69.5% over the last 12 months. All are above their 200-day simple moving averages reflecting the risk of a reversion to the mean.