As we discussed the last couple days in my post on timing, I believe both options are useful. Here is what I have discovered.
1. It is harder to hold balance while setting the catch during recovery. But with extra focus it can be done.
2. When I recover with the catch I rotate a bit farther and start the recovery earlier (at my waist). When I set the catch later (with the spear), it helps to throw the arm around the back half. It feels a lot like the Karate chop release of fly. Shinji has also posted about the underwater finish in which he uses a wrist flick launch his elbow forward. Both of these options help. When I catch later, the recovery must be faster and more aggressive and that adds momentum when it enters.
As I said before, I am still exploring these so I don't know if one is better.