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August 5, 2015 | by Chris Marti and Dianna Smoljan

Using Data to Guide Ordering Decisions

Can a momentum indicator help you anticipate future demand for your product?

In late 2008 and early 2009, the metals industry—like the U.S. economy—went through the deepest recession since the Great Depression. No industry forecast model can predict a severe market crash of the type and magnitude of the one that occurred at that time. Yet, MSCI members with access to the momentum indicator charts included in the Metals Activity Report (MAR), especially participating service centers who receive both the long-term and short-term forecasts, could see evidence as early as 2006—when service centers shipped an all-time record tonnage—that the upward market trend would not continue. Using this information, some service center executives in the MAR program report having saved significant inventory costs simply by heeding the indicators in each month’s MAR reports. What did they do? They used the MAR report market momentum indicator as yet one more data point to guide their purchasing decisions.

Here Edge gives you the basics on what a momentum indicator is, how it’s read and how MSCI’s Metals Activity Reports can help you.

Learn more about the Metals Activity Reports available.

Download the slide show to learn more about the power of momentum indicators.