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: Brookfield Homes Corp (BHS), JA Solar Holdings Co., Ltd. (JASO), AmeriCredit Corp (ACF), CB Richard Ellis Group Inc (CBG), Williams-Sonoma (WSM), Comverge, Inc. (COMV), FuelCell Energy (FCEL), General Cable (BGC), SunPower Corporation (SPWRA), TASER International (TASR), Neurocrine Biosciences Inc (NBIX), ASSURED GUARANTY (AGO), Meritage (MTH), Colonial BancGroup (CNB), Pinnacle Entertainment (PNK), CIT Group Inc (CIT), Jones Apparel Group (JNY), James River Coal Co (JRCC), Morgans Hotel Group Co. (MHGC), Savient Pharmaceuticals, Inc (SVNT), DryShips Inc. (DRYS), Centex Corp. (CTX), Brunswick (BC), Orient-Express Hotels (OEH), Sealy Corporation (ZZ) .

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.