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: Eagle Bulk Shipping Inc. (EGLE), Sunrise Senior Living (SRZ), DryShips Inc. (DRYS), ATP Oil & Gas Corp (ATPG), Genco Shipping & Trading Limited (GNK), James River Coal Co (JRCC), Netlogic Microsystems (NETL), Netflix Inc (NFLX), ABAXIS Inc (ABAX), Insulet Corporation (PODD), Global Industries (GLBL), Temple-Inland (TIN), Advanced Micro Devices Inc (AMD), Berry Petroleum (BRY), Amkor Technology (AMKR), Brunswick (BC), Micron Technology Inc (MU), Forest Oil (FST), Royal Caribbean Cruises. (RCL), Emergency Medical Services Corporation (EMS), WebMD Health Corp. (WBMD), Chiquita Brands International (CQB), Perini Corp. (PCR), Salix Pharmaceuticals (SLXP), MarineMax (HZO).

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.