The first week of TheStreet.com's Beat the Street stock contest is turning into a nail biter, with just $6,500 separating the leader, RedSox2008, from 5th place contestant.

Getting into the game is simple. Contestants get to choose five stocks that make up their portfolio and track how well it is performing. The person with the highest performing portfolio at the end of one week will then receive $5,000. But choosing your favorite shopping or entertainment retailers may not be the way to win the game. Stock for Tiffany & Co. (TIF) is currently down 10.47% for the year while, the Walt Disney Company (DIS) is down 4.43% for the year and Polo Ralph Lauren (RL) is seeing a 5.81% drop for the year.

Instead, RedSox2008 has gained $284,768 after three days by shorting, or theoretically betting that the price will drop, housing, financial, and solar stocks. Currently, that player's portfolio is short, Beazer Homes (BZH), CIT (CIT), LDK Solar (LDK), Yingli Green Energy (YGE) and Layne Christensen (LAYN).

RedSox2008’s top spot is followed closely by Sparky1 with $282,050, Georg12ana with $280,019, Rudegal with $278471 and Leon111 with $278,268. Sparky1's returns have come from an all-short portfolio that includes positions in Lennar (LEN), Fannie Mae (FNM) and Hovnanian (HOV).

It looks like shorting may be the way to get ahead. Then you can take the $5,000 winnings and help out a company that is down, maybe a shopping spree at Tiffany’s?

Contestants can follow the game through the rest of this week at Beat the Street, as well as in the Stockpickr forums. And, anyone looking to get involved can register for the next game Friday evening. (The game will continue for 13 weeks).