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: Lee Enterprises (LEE), Brookfield Homes Corp (BHS), Cypress Bioscience (CYPB), Champion Enterprises (CHB), McClatchy (MNI), CIT Group Inc (CIT), Medis Technologies. (MDTL), MBIA Inc (MBI), The PMI Group Inc (PMI), GLIMCHER REALTY TRUST (GRT), Finish Line (FINL), American Woodmark (AMWD), Janus Capital (JNS), VNUS Medical Technologies, Inc. (VNUS), Fuel Systems Solutions Inc (FSYS), Hanmi Financial (HAFC), Media General (MEG), Old Second Bancorp (OSBC), Landry's Restaurants (LNY), Opnext, Inc. (OPXT), Headwaters Incorporated (HW), Frontier Oil (FTO), Alexza Pharmaceuticals, Inc. (ALXA), Advanced Micro Devices (AMD), Micron Technology (MU)

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. The table also displays how the stock is performing in today's session. This can be a useful tool for finding situations where stocks with heavy short interest have begun to move.