After reading Embry's Investor Digest column today (see linked), I was thinking something along those lines myself. He said that he'd heard that funds were shorting the juniors and going long on producers.

If he's correct, they'll have to start covering at some point. I mean, they just can't short these into oblivion. He also suggested that much of it was naked shorting. I don't quite understand the implications of what naked short covering would do though. Anyone have an idea how that would work out?

Anyways, I kind of like the idea to look for the most shorted plays. Let's see if we can dig a few out.