With short sellers possibly scrambling to cover their positions after the new SEC rules, several small-cap restaurant companies rallied. Cheesecake Factory, with 22.9% of shares short, rallied $1.98 or 13% to 16.74 on Thursday, 9/19/08, and sonic, with an 18% short position, rose 1.93 or 13% to 16.46. Maybe can do some sync trading and use MCD to hedge. Also, need to find out how to find short position of a company.
WSJ has a short interest list:
http://online.wsj.com/mdc/public/page/2_3062-nyseshort-highlites.html
Find short interest for a company from shortsqueeze.com:
http://www.shortsqueeze.com/?gclid=COqjrfaH8JUCFRpknAodQhW7fg