One of the top performing stocks today is Volcom, Inc. (VLCM). Shares of this clothing designer are up nearly 25% after offering this release last night. It seems that part of the surge could be attributed to short interest.

The number of VLCM shares sold has risen in recent months and sits at relatively high levels. Based on the last release of short interest data, our quantified analysis department calculates that 21% of the stock's float is sold short. (I view anything above 10% as being relatively high.)

A look to the chart below shows that Volcom shorts have had little to worry about in recent months. Since peaking last summer the stock has slid from its highs near 50 to a low near 13. However, the stock does appear to have put in at least a short-term bottom with the January lows. With today's surge the stock is pushing above resistance near 20-22, which had been the approximate site of the August 2006 lows.

With the shares now pushing to their best levels of 2008 on the report, it seems logical to assume that some of the shorts are now covering their positions and exacerbating the pop. This leaves the stock pushing in on overbought levels so it will be interesting to see if it can hold the breakout above 22.

Chart Courtesy of Thomson Financial