Is my timing messed up? Liquid on piston?

[Justin35ll]

Well my motor is just sitting in the garage, but I was just checking the timing on it and when I'm on what I'm assuming is the Cyl 1 TDC compression stroke my timing chain link marks are at 9 and 11 oclock. Shouldn't it be 10 and 12?

The valaves are opening and closing at the correct times I'm guessing I mean it's never hit and I've turned it over plenty of times I'm going to have to retime it anyway when I replace the headgasket, but does it seem right?

Also I was looking down the spark plug holes and I could see my reflection from liquid on top of the pistons 3 and 4 (closest to firewall) and i put a paper towel down there and got some of the liquid it was clear and had no smell to it so I'm guessing it's just water. The motor was probably in the rain sometime I mean the flywheel has some surface rust and so do the front pullys. Do you guys think this is a problem? I'll dry it up and get it out once I take the head off.

[aznrib]

if you got water in your motor then timing is the least of your concerns