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: American Capital Ltd (ACAS), FirstFed Financial Corp (FED), Zale Corp. (ZLC), Las Vegas Sands Corp. (LVS), ArthroCare Corp (ARTC), Micron Technology Inc (MU), Boyd Gaming Corp (BYD), Palm Harbor Homes (PHHM), Dillard's (DDS), Media General (MEG), Hanmi Financial (HAFC), CBL & Associates Properties (CBL), La-Z-Boy Incorporated (LZB), Barnes & Noble (BKS), Clean Energy Fuels Corp. (CLNE), Cheniere Energy (LNG), Advanced Micro Devices Inc (AMD), Brunswick (BC), YRC Worldwide Inc (YRCW), Meritage (MTH), Lennar Corp. (LEN), DryShips Inc. (DRYS), Wynn Resorts Limited (WYNN), McMoRan Exploration (MMR), Forest Oil (FST) .

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.