Updated from 10:13 a.m. EDT

Many investors and traders believe that the stock market has hit bottom. If that is true, there are some interesting short-squeeze plays available on heavily shorted stocks.

A short squeeze takes place when a stock's short-sellers cover their positions quickly when good news boosts the price of the stock. This short-covering often drives the stock price even higher. The metric for measuring short-squeeze plays is the short ratio, which represents the number of days it would take a stock's short-sellers to cover their positions based on the stock's recent average daily volume.

Stockpickr has come up with a list of heavily shorted stocks that trade on the New York Stock Exchange and compiled the NYSE Short-Squeeze Plays for August portfolio, which includes such names as Thor ( THO), Harry Winston ( HWD) and Sealy ( ZZ).

For the rest of the story, and to see which NYSE-traded stocks could spike, please click here.

A note from James Altucher:

Every weekend I send an email to Jim Cramer and several hedge fund managers about the most interesting portfolios posted on Stockpickr that week. Usually those portfolios not only list stocks according to a theme but also offer significant analysis as to why the stocks are cheap.

Here are some examples:

Here's the challenge: Build a portfolio at Stockpickr.com with great analysis, and send me the link. Each great portfolio (with analysis) will get posted on TheStreet.com with your byline (as a "Stockpickr Guest Columnist") and will be included in my email I send to Jim and the other hedge fund managers on my list.
Stockpickr is a wholly owned subsidiary of TheStreet.com.

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