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: C&D Technologies (CHP), Ascent Solar Technologies Inc (ASTI), Furniture Brands International (FBN), SanDisk Corp. (SNDK), Grey Wolf (GW), CIT Group Inc (CIT), Insulet Corporation (PODD), Cooper Companies (COO), Capitol Bancorp. (CBC), Hovnanian Enterprises (HOV), Cousins Properties Incorporated (CUZ), Meritage (MTH), Sangamo Biosciences Inc (SGMO), Jones Apparel Group (JNY), First Solar, Inc. (FSLR), VMware, Inc. (VMW), Metabolix, Inc. (MBLX), American Axle & Manufacturing (AXL), Amylin Pharmaceuticals (AMLN), Saks Incorporated (SKS), Pinnacle Entertainment (PNK), SunPower Corporation (SPWRA), Solarfun Power Holdings Co., Ltd. (SOLF), CB Richard Ellis Group Inc (CBG), Developers Diversified Realty (DDR).

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.