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: Amylin Pharmaceuticals (AMLN), Las Vegas Sands Corp (LVS), Liz Claiborne (LIZ), Pep Boys-Manny, Moe & Jack (PBY), Theravance, Inc. (THRX), Savient Pharmaceuticals Inc (SVNT), James River Coal Co (JRCC), Brookfield Homes Corp (BHS), TTM Technologies (TTMI), Ritchie Bros. Auctioneers Incorporated (RBA), Netlogic Microsystems Inc (NETL), Huron Consulting Group Inc. (HURN), Hillenbrand Industries (HB), Sina Corp. (SINA), LDK Solar Co Ltd (LDK), Insulet Corporation (PODD), China Medical Technologies, Inc. (CMED), Valeant Pharmaceuticals International (VRX), Wright Medical Group (WMGI), ATP Oil & Gas Corp (ATPG), School Specialty (SCHS), Energy Conversion Devices, Inc (ENER), Hercules Offshore, Inc. (HERO), McMoRan Exploration (MMR), OM Group (OMG).

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.