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Squawk on the Street

CNBC's Pisani: Bull Market Theory "Rests" On Revisions


--should stock traders focus on the weak front month numbers or the strong prior revisions? The recent economic data has been so strong that bulls are successfully arguing that its the revisions that matter. 

This is classic bull market thinking, and for the moment this mentality is completely in control of the market. With good reason, bulls argue: inflation is under control (hourly earnings were below estimates), we have decent job growth, and GDP numbers this week also indicate good economic growth.

Bulls will also indicate that the Dow Transports are poised to close at an historic high, confirming the historic highs of the Dow Industrials. No, Dow Theory hasn't meant much in the last few years, but it will be trotted out by bulls as yet another confirmation of the continuing strong momentum.