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: ZymoGenetics Inc (ZGEN), Human Genome Sciences (HGSI), Developers Diversified Realty (DDR), Insulet Corporation (PODD), South Financial Group (TSFG), Las Vegas Sands Corp. (LVS), iStar Financial (SFI), Asset Acceptance Capital (AACC), Alexion Pharmaceuticals (ALXN), James River Coal Co (JRCC), Genco Shipping & Trading Limited (GNK), Geron Corp. (GERN), Dillard's (DDS), Jefferies Group (JEF), Schnitzer Steel Industries (SCHN), Clean Energy Fuels Corp. (CLNE), RTI International Metals (RTI), World Fuel Services (INT), Delta Petroleum (DPTR), Amylin Pharmaceuticals (AMLN), Vertex Pharmaceuticals Inc (VRTX), CIT Group Inc (CIT), Synaptics Incorporated (SYNA), Palm Inc (PALM), Cypress Bioscience (CYPB).

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.