Omicron variant forces new restrictions; stocks move lower

(29 November 2021) The pandemic continues.  An official alert from the WHO regarding the new Omicron variant caused markets to sell-off sharply on Friday amid mounting concern that the virus may becoming more transmissible.  Many countries have tightened restrictions in response to the new threat although it is still early days.  Based on early data out of South Africa, it seems that most cases are mild among vaccinated people, although unvaccinated people may be more likely to be experience serious illness and hospitalization. 

While Friday's near-panic selling saw stocks fall by more than 2%, markets generally rebounded today after President Joe Biden delivered a reassuring address and ruled out further lockdowns for now.  And Fed Chair Jerome Powell was quick to calm markets by noting new uncertainty in the inflation outlook given the disruptive potential of the new variant. This was a way of reminding investors that the Fed tapering of asset purchases may be subject to change.  In other words, more monetary stimulus will come if needed. 

While the early data on the variant is somewhat encouraging (more transmissible, but less lethal), the planets are a source of concern.  One potential trouble spot is the upcoming December conjunction of Saturn with the south node of Neptune at 16 Capricorn (sidereal zodiac).  Neptune is one of the planetary significators for illness and Saturn is the planet of suffering.  The blending of these two energies in mid-December could indicate that Omicron may coincide some new challenges in the pandemic. 

The likelihood of a fresh round Covid problems may also be seen in President Biden's horoscope as I have previously noted in an August post.  Since the president's chart is an indirect reflection for the nation (and to a lesser extent, the world), the upcoming Saturn (16 Capricorn) square to Biden's natal Mars (19 Libra) is worrisome.  Mars is doubly significant here because it rules both Biden's 1st house (Scorpio) representing the self and the body and the 6th house of health (Aries). 

Afflictions to these houses suggests health challenges for either him personally or for the country as a whole.  The emergence of the Omicron variant right before this Saturn-Mars aspect is likely more than coincidental.  This aspect will become exact for its theoretical maximum effect in mid-January.

These health-related planetary afflictions may raise the odds that the Omicron variant may be more than just a blip.  And when we factor in the prospect of the Venus retrograde cycle starting right around the same time (December 19), it is possible that markets will be more vulnerable in the coming weeks.  While Venus retrograde cycles are not always bearish, they are associated with changes in the prevailing trend.

As far as this week is concerned, the downside risk looks greater in the second half of the week as the Moon conjoins Mars and Ketu.

 

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