In today’s complex markets, advisors need more than simple price charts; they need context. Comparison charts provide that by visualizing relative performance, rotations, and divergences between sectors, indices, or individual stocks. Unlike single-line charts that only show an asset’s absolute trajectory, comparison charts reveal which assets are leading, which are lagging, and when leadership shifts; highlighting emerging trends and potential risks before they become widely visible. These charts can be created using SIA line charts for visual context to provide head-to-head relative strength metrics, to quickly identify which assets are outperforming in the short term.
Point & Figure comparison charts extend this analysis by focusing only on meaningful price movements. X’s represent upward trends and O’s represent downward trends. Buy and sell signals appear when columns break key resistance or support levels, showing potential entry and exit points. When combined with relative comparisons, P&F charts illustrate which assets, sectors, or indices are leading the market. They can be applied across stocks, ETFs, bonds, commodities, or sectors. Integrating visual relative performance with P&F signals allows advisors to objectively assess trends, leadership, and shifts in market behavior.
Gold Vs. Gold Miners
Applying this approach to gold stocks in 2025 provides a clear example. The VanEck Vectors Gold Miners ETF GDX surged 111.27% year-to-date, more than double the 51.48% gain of Gold Bullion. The outperformance of miners relative to bullion reflects broader market sentiment. High-beta miners outperforming the underlying commodity often indicate strong risk appetite, speculative momentum, and leadership within the sector. Conversely, when gold bullion rises but miners trend downward as the denominator on a P&F comparison chart, it indicates a shift toward the commodity over higher-beta equities, reflecting caution within the sector. In this scenario, bullion remains the relative leader while miners lose strength, providing an soobjective signal for changes in allocation or exposure.
Managing Downside Risk With Relative Strength Sell Signals
This intelligence can also be applied to portfolio positioning using relative strength and comparative insights. Wheaton Precious Metals WPM.TO climbed steadily over the past year, returning 65% year-to-date. At the time, gold miners were in a leadership position, and WPM.TO moved into the favored zone of the SIA S&P/TSX 60 Index Report, indicating a strong relative position within the sector. Later, as gold regained leadership relative to miners and WPM.TO exited the favored zone with a red SMAX score of 0–5, its relative position shifted. Kinross exhibited a similar pattern, moving from the top to near the bottom of the favored zone. Comparative charts and P&F analysis provide an objective framework to assess these changes in relative strength and sector leadership over time, helping advisors evaluate potential tactical adjustments across a portfolio.
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Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
