Some of Wall Street’s most prominent bears are turning bullish right now. But that doesn’t mean that your small-cap portfolio is safe. Here’s why these brilliant minds think that we’re back on the path to recovery — and why they’re wrong.

Dollar’s rally is cut short…Major problems for loans still exist…Yen rallies on exporter repatriation…Kiwi gets whacked! And Now… Today’s Pfennig!

Consumer Prices Increase Less Than Expected; Ten Banks Repay TARP Debt; Bankrupt Eddie Bauer Attempts Sale; Berkshire Hathaway Options Begin Trading; FedEx Losses Mount; Saab Cuts Debt; Gas Prices Keep Going, Going, Up; Boeing Gets First Air Show Order; China Will Invest Sovereign Wealth in Hedge Funds; Analyst: S&P 500 Will Hit New Highs By 2012; Bond Yields Drop; Mortgage Apps Plunge

Whether it’s heading up or down, the oil market usually asserts itself as the leader of the commodities world.  Having plunged from levels around $130 per barrel this time last year all the way down to the $40s, the market has spent the last couple of months striking to the upside again.

Jobs Jamboree gets a lift…The real numbers…The dollar comes back with vengeance! RBNZ to meet this week…And Now… Today’s Pfennig!

Stock Market Rally in Financial Horror Movie. Drag Me to Hell! That’s the title of the first horror movie with a credit crunch theme. No kidding. We just read about it in the Financial Times.

Gold was down from the far East to just before the New York open on Wednesday, bottoming at $948, but moved sharply higher to the noon hour, reaching $959 before falling steeply again into the Globex and leveling off just in the red to finish at $948.30/oz., down $3.80. Overnight, gold has edged higher.

Consumer Confidence Leaps; Hong Kong Injects More Stimulus; Virgin Atlantic Sees Cloudy Skies; South Africa Enters Recession; Experts: Supreme Court Nominee Neutral on Business; Hedge Funds Bet Big on Commodities; GM Gets Labor Concessions in Canada; Russian Firm Takes $200 Million Stake in Facebook

That the president of the United States of America is now creating the business plan for an automobile company is surely a sign of something big.

We started digging into Jeremy Grantham’s May Quarterly Letter over the weekend. Grantham is a typical underground investor: although he’s well known among institutional investors, most retail investors have never heard of him. He is the chairman of Grantham Mayo Van Otterloo, which has roughly $85 billion under management.