Well everyone is talking about commodities.

And that's good, because the entire complex is collapsing on itself. Generally speaking, that's worrisome if you're long the global reflation trade. Nothing says deflation like commodities in free fall.

Clearly, there are supply/demand dynamics at play. We went over this earlier today in our overnight recap.

But as former FX trader Richard Breslow writes in what we assume will be his final missive of the week, the real culprit may be policy uncertainty. More on that – and witches – below.

Via Bloomberg

Commodities have been getting clubbed. The interesting question is whether this hammering is trying to evolve into a candlestick rather than a sledge. It has to pique your interest that the Bloomberg commodity index saw the headlines that it had slumped to its lowest level in a year and promptly decided to stage a nice one-percent-plus rally.