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: Cadence Pharmaceuticals, Inc. (CADX), Genco Shipping & Trading Limited (GNK), Las Vegas Sands Corp. (LVS), JA Solar Holdings Co., Ltd. (JASO), Palm Inc (PALM), GLIMCHER REALTY TRUST (GRT), SunPower Corporation (SPWRA), Hecla Mining (HL), Clean Energy Fuels Corp. (CLNE), J. Crew Group, Inc. (JCG), Echelon Corp. (ELON), Brunswick (BC), American Greetings (AM), Energy Conversion Devices, Inc (ENER), bebe stores (BEBE), Tesoro Petroleum (TSO), First Solar, Inc. (FSLR), DryShips Inc. (DRYS), LDK Solar Co Ltd (LDK), Warner Music Group Corp. (WMG), Brown Shoe (BWS), Morgans Hotel Group Co. (MHGC), Metabolix, Inc. (MBLX), Eagle Bulk Shipping Inc. (EGLE), CBL & Associates Properties (CBL) .

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.