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: Sonic Automotive (SAH), Ford Motor Co (F), CompuCredit (CCRT), Central European Media Enterprises. (CETV), Overstock.com (OSTK), Micron Technology Inc (MU), YRC Worldwide Inc (YRCW), FairPoint Communications, Inc. (FRP), Solarfun Power Holdings Co., Ltd. (SOLF), Advanced Micro Devices (AMD), General Cable (BGC), Gaylord Entertainment (GET), Trina Solar Limited (TSL), Georgia Gulf (GGC), Eagle Bulk Shipping Inc. (EGLE), CIT Group Inc (CIT), Isle of Capris Casinos (ISLE), Cynosure, Inc. (CYNO), RSC Holdings Inc. (RRR), Clearwire Corporation (CLWR), LDK Solar Co Ltd (LDK), M/I Homes (MHO), Furniture Brands International (FBN), General Motors Corp (GM), Perini Corp. (PCR).

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.