Silly Timing question

I pulled the vacume advance and capped it on the carb, do I need to cap it on the distributor as well?

I have the timing light hooked up to #1 cylinder, (front drivers side). I also made sure the wire was far enough away from cylinder #3 that I wasn't getting any signal from that wire. When I installed the distributor I put #1 cylinder on TDC and aligned the timing mark with the 0 on the timing cover. At this point the rotor was pointed at cylinder 1 on the distributor. The block is a new LA 318. The timing cover and harmonic balancer are both off the original 318 I pulled out of the Demon due to a cracked block.

The only thing I can think of is the chepo $12 timing light I got at Harbor Freight.