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: Liz Claiborne Inc (LIZ), Hansen Medical, Inc. (HNSN), James River Coal Co (JRCC), New York Times (NYT), UCBH Holdings (UCBH), General Motors Corp (GM), Advanced Micro Devices Inc (AMD), Genco Shipping & Trading Limited (GNK), Lumber Liquidators (LL), Tempur-pedic International Inc (TPX), Ford Motor Co (F), Zale Corp. (ZLC), NetSuite Inc. (N), Advanced Medical Optics (EYE), RSC Holdings Inc. (RRR), Charming Shoppes (CHRS), OM Group (OMG), Smithfield Foods (SFD), Sonic Automotive (SAH), McMoRan Exploration (MMR), Sterling Financial (STSA), TTM Technologies (TTMI), Hecla Mining Co (HL), Metabolix, Inc. (MBLX), Echelon Corp. (ELON).

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.