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.

Companies included in today's scan are: Dillard's (DDS), Huntington Bancshares Incorporated (HBAN), First Tennessee National (FHN), YRC Worldwide Inc (YRCW), Old Dominion Freight Line (ODFL), Jefferies Group (JEF), Zions Bancorporation (ZION), American Axle & Manufacturing (AXL), DexCom, Inc. (DXCM), Chipotle Mexican Grill (CMG), Comerica Incorporated (CMA), Novatel Wireless (NVTL), Riverbed Technology, Inc. (RVBD), VMware, Inc. (VMW), South Financial Group (TSFG), Arkansas Best (ABFS), WebMD Health Corp. (WBMD), Columbia Sportswear (COLM), Allscripts Healthcare Solutions Inc (MDRX), AirTran Holdings Inc (AAI), Popular (BPOP), Corus Bankshares Inc (CORS), Microchip Technology Incorporated (MCHP), Jones Apparel Group (JNY), CIENA Corp. (CIEN).

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.