$FSI Flexible Solutions Intl swing trade

FSII just wanted to document a quick trade I made some nice profits from. Flexible Solutions Intl incorporated ($FSI) caught my attention last week (Thursday) because it came up on my scan in Finviz for stocks that were making big moves on large volume. My research on this stock ticker was nothing particularly fancy. Pretty simple but effective strategy really.

I bought it for several reasons last Thursday. First, it had decent and increasing volume and a clear uptrend on both the daily and the weekly charts. The stock was trading above the 4 day ema (but not too far above it!) and RSI was above 70 on both the daily and weekly charts. Again this is my criteria for a momentum trade.

Click HERE to see how I learned to spot these momentum trades.

Next I checked out the SEC filings and industry – nothing too worry about in terms of recent filings and there was a potential catalyst to drive this low float stock (low float means a catalyst has more effect!). The catalyst was essentially that California rains abruptly stopped causing rising concern about the drought situation. Flexible Solutions International¬†is the developer of WaterSavr the world’s first commercially viable water evaporation retardant. WaterSavr reduces evaporation by up to 30% on reservoirs, lakes, aqueducts, irrigation canals, ponds and slow moving rivers based on¬†multiple studies around the world. It is approved for use in the U.S. by NSF International, an independent public health and environmental safety organization that reviews and approves products.

So their is potential for this company to dominate this space and therefore I consider this a great ‘drought’ stock to go to when news of increasing drought hits. Combine all this and the lovely momentum chart, this buy at $1.35 per share was a no brainer for me. I sold on Monday just 3 days later for a stress free $.20 (15%) per share gain. I bought a large position size so I was happy with these gains, however I don’t think the story of this stock is over.

Click HERE to see how I learned to spot these momentum trades.

Russell

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