Stocks could react to the G-20 meeting results. If investors believe there is a meaningful commitment to execute a plan to support the banks and the sovereign debt, markets could rally further from here. However, any concerns by investors that the meeting was more talk than future action could set the markets back.

The US economic agenda is chock full of data, including reports on industrial production, capacity utilization, the producer price and consumer price indices, housing starts, existing home sales, leading economic indicators and jobless claims.

Earnings season begins to ramp up with IBM, Citigroup, Intel, Bank of America, Goldman Sachs, Coca-Cola, JNJ, Apple, Abbott Labs, Phillip Morris, GE and Verizon among those reporting.

Commentary
 Emerging Stories

Since October 3rd, the S&P has advanced from the bottom of a thousand point trading range (1100 to 1220) to the very top - a move of 11.4%. Before Friday, the last time we saw the S&P above 1220 was back on August 3rd. It dipped to 1099 on September 30th. The swings have been dramatic.

If there is one thing that recent volatility has affirmed, it is that market timing is not for the average investor. Hairpin turns on the market race course are not easy to negotiate even if you are a professional driver. The markets rely on hints of good news to set their pace. The actual good (or bad) news often remains in their blind spot. Taking the markets to the next level is likely to require more concrete evidence out of Europe and the US that the pitfalls of another banking crisis and severe recession have been avoided.

Vigilant investors repeatedly ask themselves, "Am I missing something?" The latest headlines tend to focus on a limited number of topics du jour. The next big story could be masked by more immediate and attention grabbing news.

One possible upcoming narrative could be from emerging markets. These developing countries have been struggling with inflation for much of the year. Measures taken to control inflation, such as raising interest rates or placing restrictions on loans, have resulted in slowing economies. However, inflation is beginning to dissipate and the trend of rising rate increases is likely ending. Brazil and Indonesia have already lowered rates in an attempt to re-charge economic growth.

As major exporters, emerging markets have been hit by the decline in demand for commodities and finished goods by the US and Europe. Singapore, a trade dependent economy, warned last Thursday that its growth could slow to 5% for the remainder of 2011 and to 3% next year, should global economic conditions continue to deteriorate. The Philippines, suffering from a decline in electronics exports, announced a $1.66 billion dollar stimulus package.

China remains a question mark. Those espousing negative views focus on opaque data, a faltering real estate market and potential problems in the Chinese banking system. However, China is reacting quickly. It took steps to shore up its financial system this past week by increasing the government's investment in four state owned banks. It encouraged more loans to small and mid-sized businesses, and it curtailed off-balance sheet lending (something that got the US in trouble in 2008) by banning banks from moving loans off their books into unregulated markets.

Where does all this leave us with the emerging markets? Gloom continues in the headlines as countries confront the impact of higher interest rates and lower exports. If a severe global recession ensues, emerging markets could be hit hard. But a mild contraction could leave open the opportunity for meaningful gains. Without a lot of burdening debt (a number of countries have current account surpluses as well), many emerging markets have broad simulative powers. In addition, middle class consumers have been growing, allowing emerging market countries to become less dependent on exports and more responsive to domestic consumption.

Has a global recession been built into current prices? A number of analysts believe so. The MSCI EM (Emerging Markets) index was off 21.88% year to date, as of September 30th. The exchange traded fund proxy for emerging markets - EEM - is down 16% on the year, as of last Friday, showing that investors have made up some of the losses in the last few weeks, but remain well into corrective territory. Markets like to anticipate, which bodes well for this region if the global economy skirts a serious recession. But they also freely punish themselves when hopes are dashed.

While emerging markets would like to think of themselves as increasingly independent from the West, they remain tied closely to the economic policies of both Europe and the US. Their story is linked to our story and vice versa. It should be worth investors' time to focus more attention on these countries, so not to be surprised by the headline of tomorrow.