Schaeffer's Market Observation Features JetBlue Airways.

Business Editors

CINCINNATI--(BUSINESS WIRE)--Sept. 23, 2003

Today's Market Observation features JetBlue Airways (NASDAQ:JBLU). Schaeffer's Market Observations are market-based reports that provide insight and analysis from a unique and unbiased perspective. Market Observations are published on www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link. Each new subscriber will receive a FREE copy of Bernie Schaeffer's Options 101 CD-ROM (a $49.95 value).

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JetBlue Airways Jets Higher

JetBlue Airways (NASDAQ:JBLU) is the best of both worlds - a low-priced airline that offers its passengers both leather seats and DirecTV access. JBLU has two hubs, at JFK airport in New York and at Long Beach Airport near Los Angeles. The airline currently boasts around 40 aircraft and serves 20 U.S. cities and Puerto Rico. This morning, it was reported that JBLU will joining the S&P Midcap 400 Index (MID - 527.55), replacing Hispanic Broadcasting, which has been absorbed into Univision Communications.

Today's news has lifted JBLU shares back above their 10-day moving average, below which the stock closed on Monday. JBLU has also achieved a new all-time high of 60.09 in today's session. Since mid-March, the stock has been rallying strongly, increasing by more than 150 percent during the past six months. Throughout this rally, JBLU has enjoyed nearly constant support from its ascending 10-day and 20-day moving averages.

Click the following link to see the Daily Chart of JBLU Since March 2003 With 10-Day and 20-Day Moving Averages:

http://www.schaeffersresearch.com/wire?ID=8511 .

Despite the equity's technical prowess, there are creeping signs of pessimistic sentiment on the security. First, Schaeffer's put/call open interest ratio (SOIR) for JBLU has been on the rise since mid-July, advancing from 0.37 to its current reading of 0.62. In the front three-months' options series, there are currently 8,600 open calls compared to 5,335 open puts. The bulk of the call positions reside at in-the-money strikes, meaning that JBLU should not face any options-related resistance in its path over the short term.

Click the following link to see the SOIR for JBLU Since May 2003:

http://www.schaeffersresearch.com/wire?ID=8511 .

Secondly, there are currently around seven million JBLU shares sold short. When compared to the equity's average daily volume, this represents a short-interest ratio of 8.13 times, also known as eight days to cover. If JBLU continues to rally through new-high territory, these bearish speculators may rush to cover their positions, boosting the stock even higher in the process.

Finally, Wall Street analysts have yet to start a love affair with JBLU. According to Zacks, there are only eight brokerage firms that currently cover the stock, just two of whom name it a "buy." The remaining six analysts have listed JBLU as a "hold." Any additional coverage from the Street, or any upgrades from this noncommittal bunch, could also provide fuel for the equity's rally.

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About Schaeffer's Investment Research (www.SchaeffersResearch.com):

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, www.schaeffersresearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: www.schaeffersresearch.com/method .