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: The South Financial Group (TSFG), Asbury Automotive Group Inc (ABG), JA Solar Holdings Co., Ltd. (JASO), Las Vegas Sands Corp. (LVS), Smithfield Foods (SFD), Enzon Pharmaceuticals (ENZN), LCA-Vision (LCAV), Colonial BancGroup (CNB), Home Inns & Hotels Management Inc. (HMIN), ASSURED GUARANTY (AGO), CompuCredit (CCRT), Eagle Materials Inc (EXP), Lamar Advertising (LAMR), NetSuite Inc. (N), FactSet Research Systems (FDS), Perini Corp. (PCR), Pantry (PTRY), Whole Foods Market Inc (WFMI), Aegean Marine Petroleum Network Inc. (ANW), LDK Solar Co Ltd (LDK), ABAXIS (ABAX), General Motors Corp (GM), E.W. Scripps (SSP), Cephalon (CEPH), BlueLinx Holdings Inc. (BXC).

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.