Rather than do it this way, with the straw, pop the little rubber bung off the bell housing on the left side and shine a light in there.
As you rotate the rear wheel, there are two tabs that will go by the hole in rapid succession. The first has a hash mark with a Z -- this is full advance. The second has a hash and an S below a hash and OT. The S is full retard. OT is top dead center.
When you position the motor so that the hash mark above OT points to the witness mark on the left side of the hole, one side of the motor will be at the top of the compression stroke and the other will be at the top of the exhaust stroke. The valves on the compression stroke must be closed, so if they're set right, their rockers will both wiggle some. The valves on the exhaust stroke should both be at least partially open, and the rockers will be tight.
Your description sounds like you're rotating the rear wheel too quickly. There is time for two strokes between the intake closing and the exhaust opening. However, after the exhaust opens, the intake will open before the exhaust closes (this is what's called overlap -- as the last of the exhaust is being pushed out of the cylinder, it begins to pull fresh charge in from the intake).
I just set the valves on my bike yesterday, using the method above. In 5th gear, you only need to turn the rear wheel about a quarter turn to go through all four strokes.