Editor’s note: Jim Cramer will present his 2009 stock outlook for the first time at TheStreet.com Investment Conference on Saturday, Oct. 25. Limited seating. Act now.

When you see something like the thousand-point increase in the Dow Jones Industrial Average on Monday, you realize that there are stocks moving up way more than normal due to short squeezes.

A short squeeze takes place when the short-sellers short-interest in a stock scramble to cover their bearish positions when that stock moves sharply upward; their buying ends up pushing shares even higher. Short positions of stocks are measured by the short-squeeze ratio, which represents the number of days it would take for the short-sellers to cover their positions based on the recent daily volume of the stock.

Stockpickr has come up with a list of the top New York Stock Exchange short-squeeze plays for the month of October.

One stock with a high short ratio is Cox Radio (CXR), the radio station operator, which has a short ratio of 20.9. The company just announced its earnings call for the third quarter of 2008. The stock was recently downgraded by C. L. King from neutral to underperform. It has a forward P/E of 9 and a PEG of 3.09.

Cox shows up in the portfolio of the DWS Communications Institutional Fund, which has a Morningstar rating of three stars and is managed by Bruce Behrens. It has had an average annual return of 22.36% over the last five years. DWS also owns America Movil (AMX), with a short ratio of 0.9; American Tower (AMT), with a short ratio of 1.4; and NII Holdings (NIHD), with a 2.3 ratio.

Another NYSE stock with a high short ratio is Cabela's (CAB), the marketer of camping, hunting and fishing equipment, which has a short ratio of 19.5. The company just announced that it is reducing its workforce by 10% at its headquarters. The stock has a P/E of 7 and a PEG of 0.48.

Cabela's is favored by Wallace Weitz, who runs the Weitz mutual fund family based in Omaha, Nebraska. He is also considered to be the "other Oracle of Omaha," and he even owns Berkshire Hathaway (BRK.B). He also likes Redwood Trust (RWT), with a short ratio of 11.3; American Express (AXP), with a 1.1 short ratio; and WellPoint Health Networks (WLP), with a 1.2 ratio.

For more ideas, check out the top New York Stock Exchange short squeeze plays portfolio at Stockpickr.com.

Posted on Oct. 16, 2008