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So yesterday I said that it would be tough for the market to decline while Apple rises. And today it did just that. It seems as soon as you dismiss a possibility in the stock market it immediately comes to pass. I also noted the resistance level the stock had formed at the DeMark risk level (467.77) and today it closed just above that. Another example of how the market makes a fool out of you as soon as you open your mouth.

Part of the bear case for Apple has been that the company is losing market share in the smartphone business to Google’s Android. Today comScore refuted that notion by reporting that Apple actually gained 2% of market share in December taking it to 36.3% of the market. Android gained as well but at a slower pace.

David Einhorn came out today in defense of his Apple ownership. He announced his hedge fund firm, Greenlight Capital, was suing the company to prevent its management from taking steps he feels are against shareholder interests. After reading the basis for the suit I can’t take it seriously. However, Einhorn may not be serious with the suit, either. Just the act of promoting shareholder interests in relation to the company’s massive cash pile may be enough of a play for him.

One of the things that I believe is depressing the share price currently is a perception that Apple does not prioritize the interests of its shareholders. With $137 billion doing nothing but collecting dust in the company safe its hard to argue otherwise. Should the market begin to glean that Tim Cook & Co. are going to pursue more shareholder-friendly initiatives the stock price could rally just on the improved valuation that would come from removing this cloud of perception.

So we are starting to see at least a couple of signs that suggest the depressed valuation may not be justified. Technically, the fact that the stock has now risen back above the DeMark risk level and the uptrend line that dates back to 2009 is clearly positive. In addition, there is a large price gap from the earnings release trading day that should get filled (to $500 or so). All in all, things are starting to look a little less grim for the stock price.