As discussed here, I have resurrected a scan that focuses on companies that are heavily shorted. The purpose is to find stocks that could be in the midst of a potential short covering rally. More details about the methodology are listed below and more information on short interest is here. As you can infer from the table below, there weren't many advancers yesterday but there were at least a few stocks gaining ground.

Companies included in today's scan are: Pilgrim's Pride (PPC), BlueLinx Holdings Inc. (BXC), Biodel Inc. (BIOD), Stewart Enterprises (STEI), NorthStar Realty Finance Corp. (NRF), Synaptics Incorporated (SYNA), Lindsay Manufacturing Co. (LNN), Riverbed Technology, Inc. (RVBD), MetLife (MET), AMR Corp. (AMR), CARMAX INC (KMX), Eagle Test Systems, Inc. (EGLT), American Greetings (AM), Quanta Services (PWR), Smithfield Foods (SFD), VeriFone Holdings, Inc. (PAY), Innophos Holdings, Inc. (IPHS), Buckle (BKE), Cadence Pharmaceuticals, Inc. (CADX), Brookfield Homes Corp (BHS), LKQ Corp. (LKQX), Aventine Renewable Energy Holdings, Inc. (AVR), YRC Worldwide Inc (YRCW), Netflix (NFLX), Hutchinson Technology Incorporated (HTCH).

Methodology - the query scans my database of companies which has some basic filters to eliminate penny stocks and those that don't trade frequently. The table above lists stocks that have at least 10 percent of their float sold short and then shows the top gainers from the previous trading day. This can be a useful tool for finding situations where stocks with heavy short interest have begun to move.