Cam timing - stock 70 2,2
 

Couple of questions:

1. The dots are supposed straight up. That is a relative term. Is there some place to measure from to determine where that position is?
If it doesn't matter then tell me so. I'm an engineer and can't help but be anal.
2. I set the valve overlap on the left side. Turning the cam counter clock wise to get the proper reading on the dial indicator.
Is this right?

I have Wayne's book but neither of these points are clear. If I missed that then again tell me.
"I'm a man I can change if I have to"
Red Green

Being's you are an engineer, you recognize to properly time the cam in relation to the crankshaft, it is proper to rotate the crank in its normal direction CW, which in turn rotates the camshaft CCW.
The dots and other markings on the end of the camshafts of course don't offer the necessary resolution to accurately time or even check the cam timing. It does provide a quick visual check.
Further, using a dial indicator to time the cam is a shop method derived from actual degree wheel settings.
Bottom line you are correct.