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: Cooper Companies (COO), ZymoGenetics (ZGEN), Synta Pharmaceuticals Corp. (SNTA), Cerner Corp. (CERN), Savient Pharmaceuticals, Inc (SVNT), Great Atlantic & Pacific Tea (GAP), InterMune Inc (ITMN), AAR (AIR), Thoratec (THOR), Theravance, Inc. (THRX), Mylan Laboratories (MYL), Career Education (CECO), Conn's (CONN), General Motors Corp (GM), Sotheby's Holdings (BID), Diamond Foods, Inc. (DMND), United Community Banks (UCBI), Universal Technical Institute Inc (UTI), Indevus Pharmaceuticals (IDEV), Family Dollar Stores (FDO), Flowers Foods (FLO), Metabolix, Inc. (MBLX), Tootsie Roll Industries (TR), Integra LifeSciences (IART).

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 is a filtered list of stocks that have at least 10 percent of their float sold short and showed a gain in the previous trading day. This can be a useful tool for finding situations where stocks with heavy short interest have begun to move.