Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 1

Weekly Markets Overview 2016/11/04

The KSL Empirical Volatility

by AI application “KSL Risk Forecasting System”

Risk Forecasting of Major Markets Stock Indices

Dow Jones Industrial Average p.2

NASDAQ Composite p.3

Russell 2000 Index p.4

Standard & Poor's 500 Index p.5

Nikkei Stock Average 225 p.6

Germany DAX Index p.7

FTSE100 p.8

Currencies

USD/JPY p.9

EUR/USD p.10

GBP/USD p.11

Government Bonds

U.S. 10-Year Bond Yield p.12

Japan 10-Year Bond Yield p.13

Germany 10-Year Bond Yield p.14

UK 10-Year Bond Yield p.15

Commodities

Crude Oil Futures (WTI) p.16

Gold Futures(USA) p.17

What’s the KSL Empirical Volatility?

The KSL Empirical Volatility is calculated by AI application “KSL Risk Forecasting System”.

The upper graph is a sample of it. In this sample the right side is the forecasting risk value of

2 months from the next day of 2016/11/14 to 2017/1/19.

The area sandwiched between the blue line and the red line is the risk range of about 70%

chance (±1σ). And the green line is average value of the risk range.

The KSL Empirical Volatility (daily) is drawn at the lower right.

For more details, see. (Sorry, Japanese text only.) ⇒ http://www.ksl-pr.com/

The Risk Range

The KSL Empirical Volatility

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 2

■Dow Jones Industrial Average

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 18,449.73 18,056.23 17,662.73

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 100.0

2M Succeeded 86.4

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 3

■NASDAQ Composite

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 5,456.44 5,178.35 4,900.27

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 86.4

2M Succeeded 81.8

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 4

■Russell 2000 Index

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 1,284.79 1,198.55 1,112.30

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 22.7

2M Failed 27.3

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 5

■Standard & Poor's 500 Index

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 2,183.50 2,118.73 2,053.95

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 100.0

2M Failed 59.1

3M Succeeded 97.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 6

■Nikkei Stock Average 225

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 18,092.55 17,469.93 16,847.31

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 31.8

2M Succeeded 100.0

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 7

■Germany DAX Index

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 11,182.39 10,532.10 9,881.80

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 100.0

2M Succeeded 86.4

3M Succeeded 97.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 8

■Financial Times Stock Exchange 100 Index

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 7,263.15 7,002.95 6,742.76

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 100.0

2M Succeeded 84.1

3M Succeeded 98.5 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 9

■ USD/JPY

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 107.71 102.83 97.96

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 9.1

2M Succeeded 100.0

3M Succeeded 72.7 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 10

■ EUR/USD

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 1.15 1.11 1.07

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 18.2

2M Succeeded 97.7

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 11

■ GBP/USD

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 1.26 1.18 1.09

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 9.1

2M Failed 20.5

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 12

■U.S. 10-Year Bond Yield

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 2.10 1.75 1.39

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 100.0

2M Succeeded 88.6

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 13

■Japan 10-Year Bond Yield

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 0.04 -0.06 -0.16

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 86.4

2M Succeeded 97.7

3M Failed 0.0 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 14

■Germany 10-Year Bond Yield

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 0.33 0.11 -0.11

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 68.2

2M Failed 31.8

3M Failed 42.4 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 15

■UK 10-Year Bond Yield

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 1.50 1.11 0.71

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Failed 0.0

2M Succeeded 70.5

3M Failed 60.6 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 16

■Crude Oil Futures (WTI)

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 56.46 49.37 42.27

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 86.4

2M Succeeded 77.3

3M Failed 15.2 ※Succeeded is >= 68%. Failed is < 68%.

Risk Disclosure: KSL will not accept any liability for loss or damage as a result of reliance on the information contained within

this website including data, quotes, charts and buy/sell signals. Before deciding to trade foreign exchange or any other financial

instrument you should carefully consider your investment objectives, level of experience, and risk appetite. KSL does not bear

any responsibility for any trading losses you might incur as a result of using this data.

Ⓒ 2016 KSL http://www.ksl-jp.com/ 17

■Gold Futures(USA)

Forecasting (Next 2 months)

Verification (1 month Forecasting)

Verification (2 months Forecasting)

Verification (3 months Forecasting)

■ Summary Forecasting Higher Average Lower

1M Later private private private

2M Later 1,498.23 1,330.45 1,162.68

3M Later private private private ※Probability between the Blue line and the Red line is 68% (±1σ).

Ratio of transition in the risk range Verification Result (%)

1M Succeeded 90.9

2M Failed 59.1

3M Succeeded 100.0 ※Succeeded is >= 68%. Failed is < 68%.