You can do that fairly easily with canvas.
Placing the element that is going to receive clicks over the canvas.
Tracking the mouse position on the top layer (the element to receive clicks) and using those mouse positions to draw on the canvas below.
Here is some code I made for you:
<!DOCTYPE html>
<html lang="en">
<head>
<meta charset=utf-8 />
<title>test</title>
<style type="text/css">
#hold { margin:0 auto; width:500px; height:500px; border:1px solid #000; }
#canvas { float:left; }
#top-layer { position:absolute; z-index:1; width:500px; height:500px; cursor:crosshair; }
</style>
</head>
<body>
<div id="hold">
<canvas id="canvas" width="500" height="500"></canvas>
<div id="top-layer" onmousemove="trackMouse(event);">
<ul>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
<li><a href="http://www.google.com">Test Link (takes u to google)</a></li>
</ul>
</div>
</div>
<script type="text/javascript">
var ctx = document.getElementById('canvas').getContext('2d');
function trackMouse(event) {
ctx.globalCompositeOperation = "source-over";
ctx.clearRect(0, 0, 500, 500);
this.r = 25; // Radius of circle
this.x;
this.y;
this.x = event.clientX - document.getElementById('canvas').offsetLeft;
this.y = event.clientY - document.getElementById('canvas').offsetTop;
ctx.strokeStyle = '#000';
ctx.lineWidth = 1;
ctx.beginPath();
ctx.arc(this.x, this.y, this.r, 0, Math.PI * 2, true);
ctx.closePath();
ctx.stroke();
};
</script>
</body>
</html>