I put in a new (used) engine in my wagon for which I don't have much history - the PO only had it for a little while and didn't know much of the maintenance history before he got it. It runs well but lacks top-end power and knocks, and sometimes smokes a lot (but the price was right

). I figured the IP timing was off, but I thought I should check the chain stretch first...
I checked my chain stretch using the cam timing marks method as outlined in the
wiki. I know this isn't the most accurate method but until I get a dial indicator it's the best I can do.
The results seem a little strange though. From what I understand, ideally the reading on the crank should be 0 TDC to 2 degrees ATDC, or more if the chain is stretched. I'm getting a little over 9 degrees
before TDC

. I did the measurement multiple times, I'm sure I aligned the marks perfectly and I never rotated backwards (counterclockwise). See the pictures...
I'm trying to get my hands on a dial indicator to double check.
What's up with this? What does it mean?? Am I doing this wrong?