Summary
Bank of America shares dipped and then popped importantly over the course of the past two Wednesdays.
Important and relative economic data was reported on each day via a regular report on mortgage activity.
It showed swings in refinance activity that would be important to the major housing lender's business.
However, based on my years of following the data and other obvious contradictions, an anomaly caused the appearance of a change in business activity.
There are relevant future implications to consider, but because the indication was anomalous, my strong buy view on BAC still holds.
Did you notice what happened to Bank of America (NYSE: BAC) shares over the course of the last two weeks? The important lender saw its shares dip abruptly before rebounding about as quickly as they fell exactly one week later. The price action appears to have been driven by a regular economic data point that is important to the lender. Given our standing recommendation of the shares, it’s our responsibility to help our followers to understand why it happened, and to inform you of any future implications. Finally, it’s important you know that we reiterate our buy recommendation on the shares, given our view that the move was anomalous and not the result of a meaningful factor that may impact the shares through our 12-month forecast.
