The gray disaster forecast of stock market

In this paper, GM (l, 1) model in gray system theory is used to predict the weeks closing price on the Shanghai and Shenzhen 300 Index fell more than 2.5% and the months closing price fell more than 10%. The results showed that the accuracy of predictive value met the requirements and it indicates that the model can be used for the disaster forecast for the Shanghai and Shenzhen index in long-term and medium-term.