Find The Stars Of Tomorrow-the Statistical Analysis Of Sector Rotation Of The Stock Market And Applied Research In The Investment

Hot switching, sector rotation is a common phenomenon in the stock market, and investors are looking for the dream to be able to find the next sector that may have excellent performance in the sector rotation, The main purpose of this paper is as follows:I hope that through more systematic method to determine whether between the star plates and the stock index has some unique relationship; addition, because of currently special T+0trading system, after the discovery of a star plate, whether it can have investment value, depend on the duration of the star sector continues. This article also systematically studied the law of the stars sector continue time under different market environment from a statistical point. This paper is organized as follows,firstly, this paper introduce and review the background of the development of the stock market and our trading system. Chapter Ⅱ it analyses the relationship between sector rotation and economic cycles, which divided into foreign and domestic economic cycle. Last it describes the relationship between our country and economic sector rotation cycle. Chapter Ⅲ focuses on the analysis of investment analysis and introduce the efficient market theory and fractal market theory, and the relationship and differences between them. Then today’s popular investment strategy summary and classification system are display. Finally this made a focus on technical analysis, introduces the Dow theory, wave theory, and sector rotation. Chapter Ⅳ is the focus of this article and where the star of a comprehensive sector in-depth analysis, then use cluster analysis to classify the plates. The conclusion is that there is speculation in the Chinese market and sector rotation speed is too fast, the lower the probability of the star plates, but only one plate is considered separately, stars effect becoming longer, it is being said that the probability of large gains increase on three consecutive days. Although China’s stock market in general have significant sector rotation phenomenon, but the frequency of sector rotation is faster, investors cannot catch it.