My thesis that the market is ready to stage a correction seems to be right one day, wrong the next.

I’ve been looking for the right time to get shorter the market. My 2,000 QID keeps going in and out of the money- never really make too much or losing too much.

However, I did like today’s action in the markets, and bonds were strong, forcing stocks lower. Lately, there has been a disconnect with both stocks and bonds moving higher together- this is not usually the case. When money flow out of bonds, it pushes stocks higher, and vice versa. I continue to believe we are still in for a correction, and hope to get fully positioned to take advantage if and when the time comes.

Oil came down nicely in conjunction with Bernanke talking up the dollar- this works against my correction thesis, but is good for all of us in the long term.
I posted a review of PNWIF Q2 numbers today- there was one minor negative surprise, but great top line growth in their traditionally weakest quarter. The stock has held over $4 post making a fast run to $4.20 after announcing the deal with Kodak China. The Merriman analyst still sees the company delivering $.33 per share in fy’09. If the market is going to fully buy into that number, it should start pricing it in over the next couple of months. This one could be in line for a NASDAQ listing in fairly short order.

In other news out of microcap land- EFSF bounced off a new all time low. Something good is bound to happen here pretty soon. We are overdue. You have to either sell that one or be a long term investor. SPKL continues to run into a wall at $.90, but on not much volume. Lots coming on that one in June.  PNWIF continues to hold above $4, which I love.

Nothing to report on TCGD- they are in the process of obtaining certification on their technology for US airports. VTOK is doing nothing and nobody cares. CREE- I believe I will sell that one and get out the next time it heads to $30. They are not quite delivering the numbers to my liking.