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: Media General (MEG), BlueLinx Holdings Inc. (BXC), Liz Claiborne (LIZ), ArthroCare Corp (ARTC), Frontier Financial (FTBK), Zale Corp. (ZLC), Las Vegas Sands Corp. (LVS), Hutchison Telecom Int (HTCH), Century Aluminum (CENX), DryShips Inc. (DRYS), Developers Diversified Realty (DDR), YRC Worldwide Inc (YRCW), Starwood Hotels & Resorts (HOT), iStar Financial (SFI), SanDisk Corp. (SNDK), Saks Incorporated (SKS), Martha Stewart Living Omnimedia (MSO), Genco Shipping & Trading Limited (GNK), General Motors Corp (GM), Theravance, Inc. (THRX), Cooper Companies (COO), Southern Copper Corp (PCU), American Capital Ltd (ACAS), Hansen Medical, Inc. (HNSN), General Cable (BGC).

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.