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: Maguire Properties Inc (MPG), ArvinMeritor Inc (ARM), American Capital Ltd (ACAS), Talbots (TLB), Furniture Brands International (FBN), FirstFed Financial Corp (FED), YRC Worldwide Inc (YRCW), Great Wolf Resorts, Inc. (WOLF), CIENA Corp. (CIEN), Hovnanian Enterprises (HOV), Amedisys Inc (AMED), Colonial BancGroup (CNB), ATP Oil & Gas Corp (ATPG), Insulet Corporation (PODD), ArthroCare Corp (ARTC), Advanced Medical Optics (EYE), Brunswick (BC), Synaptics Incorporated (SYNA), Novatel Wireless (NVTL), Nautilus Group (NLS), Louisiana-Pacific (LPX), Cree Inc (CREE), M/I Homes (MHO), Universal Display Corp (PANL), DryShips Inc. (DRYS).

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.