Markets tumble as Western sanctions on Russia push oil prices higher

 (7 March 2022) Stock markets remained volatile to start the week as the ongoing Russia-Ukraine war has seen oil and agricultural prices surge to multi-year highs.  The prospect of major supply interruptions and onerous Western sanctions has seen crude oil trade above $120 while wheat futures have risen 75% above their January level.  Putin's invasion of Ukraine has been an unwelcome shock to the financial system as the already elevated rate of inflation threatens to explode even higher.  This puts the Fed in a very difficult place ahead of next week's FOMC meeting as it is poised to raise interest rates to rein in inflation. 

The transits this week look mixed.  The Venus-Mars conjunction is still very close -- just 11 arc minutes today -- but Venus has finally passed Mars and is beginning to separate from the more bearish influence of Mars.   This gradual separation hints at a possible improvement in sentiment in the coming days although the conjunction is still close enough that we cannot rule out further volatility.  Monday's significant decline in US markets is perhaps evidence of that lingering Mars influence on Venus. 

The other possible bright spot this week is that the Sun will transit between Jupiter and Neptune.  This looks like a broadly positive influence which should at least coincide with a brief rally attempt.  Wednesday's alignment places the Sun in the approximate midpoint between Jupiter and Neptune and thus highlights an upside potential.  The bearish Mars-Jupiter parallel in latitudes is exact over this coming weekend so it may not have a major influence.  So while the planets generally do not look very good for the next little (e.g. Pluto conjoins the Saturn south node at 4 Capricorn), there is a real possibility of a bear market bounce in the coming days.

A larger concern is how much the US and the Western world have been caught up in this war fever.  While the illegal Russian violation of Ukrainian sovereignty is plain to see, all this talk of war may be fulfilling President Joe Biden's dangerous karma.  He was inaugurated on January 20, 2021 on the day of an exact conjunction of Mars and Uranus in the 1st house (= sudden violence and conflict) and the New Year's horoscope for 2022 featured a close Moon-Mars conjunction in Scorpio suggesting the greater likelihood of war at some point this year.  Let us hope that the spirit of compromise eventually wins out over the forces of single-minded righteousness. 

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