I couldn’t believe my eyes… 

Splashed across the television earlier this week was Robinhood CEO Vlad Tenev, strutting around an outdoor stage at a chateau in the south of France, announcing his company’s newest crypto venture: tokenized trading.

We’ll get to the details of these plans in just a minute.

But first, I want to talk about the absurdity of this scene – and why it matters if you (like me) are a Robinhood Markets Inc. (HOOD) shareholder.

Obviously, Vlad’s not the most recognizable CEO in the world. He doesn’t get nearly as much attention as Elon Musk, Jensen Huang, or even boring ol’ Tim Cook. 

In fact, I can’t think of a major media appearance where Vlad wasn’t wearing a black t-shirt or a simple navy blazer. He just sort of… blended in.

That all changed this week when Vlad appeared in what I can only characterize as comic book chic. 

Sporting a white pinstripe suit, white shirt, and what I can only assume is an ascot, Vlad looked like he was unveiling a new weapon he plans to use to take over the world, challenging Superman to try to stop him before it’s too late.

Vlad isn’t blending in anymore as he embraces a new style and Robinhood’s growing dominance. I call this the Supervillain Indicator – a predictable metamorphosis of the world’s most successful CEOs. Think Jeff Bezos’ evolution from skinny computer dork to Mr. Muscles. Or Mark Zuckerberg ditching his hoodie for oversized t-shirts and gold chains, growing out his curly hair as he embraced his martial arts training.

Vlad’s costume change is more than just a silly stunt. It shows he’s becoming a major power player, ready to take Robinhood to the next level. 

In a way, he really is taking over the world. And tokens are the next giant leap in his grand plan…

The Dam Bursts

You don’t have to be a crypto expert to understand why tokens are becoming a big deal right now…

The major disruptive ideas in Vlad’s unveiling are the tokenization of private shares to accompany Robinhood’s very own blockchain. In Europe (where regulatory laws are different), users will be able to buy tokens representing shares of popular private companies, OpenAI and SpaceX, along with other US public companies and ETFs.

It’s all part of what Robinhood does best: reducing the friction of investing in just about anything. No longer will you need seven figures to buy into a hot startup. With tokens, everyone gets a shot.

While tokens are hardly a new idea, I believe Vlad’s announcement is the dam bursting, flooding the public’s consciousness with the next big thing in finance.

Laws will change, fortunes will be made (and lost), and investing will never be the same. It’s all happening – and it starts in earnest right now, thanks to the newest supervillain CEO in a flashy suit.

The idea of a token zeitgeist is clearly reflected in HOOD shares. The stock has absolutely steamrolled the market, posting an incredible 200%-plus rally off its April lows. It surpassed all expectations – even my uber-bullish call that it would hit $100 sometime this year (and it’s only July!).

Of course, more than a few speculators are buying the HOOD hype here at nosebleed levels. I don’t fault them. In fact, they will have a chance at impressive gains eventually – if they can withstand some volatility and pullbacks without getting shaken out.

But that’s a tough proposition. It’s psychologically taxing to buy into the peak of a hype cycle, only to watch the stock you believe in begin to retrace.

That’s why it’s so important to stay tactical in these situations…

Trading Smart as the Market Gets Loud

I sold about half of my longer-term HOOD position Wednesday afternoon.

The market forced my hand. After a sharp, improbable rally off its April lows, I had no choice but to trim the position I had held for three years (I bought a sizable chunk when it was trading in the $10 range).

It’s not that I don’t believe Vlad and HOOD will one day reach the echelon of great, life-changing public companies. I’ve written at length about the idea that the company has that magic mix of growth and disruption that could propel it to market royalty.

But HOOD is no longer the sleeping giant it was just a few months ago. The story is gaining traction, and the market froth is undeniable right now. Even as the stock pulled back into the low $90s Thursday, it’s still extremely overbought at these levels.

Think of it this way: Even if HOOD dropped to $65, shares still would be above where they were trading just six weeks ago – and that’s a mind-numbing 30% drop from current levels!

I’m more comfortable riding out a reset with a smaller position. Even if we see a move to $65 or lower, we’re still dealing with an extremely bullish long-term chart.

Remember: even the best stocks go through corrective periods. While I don’t think HOOD will completely fall apart anytime soon, it’s important to note that it fell as much as 90% from its post-IPO highs during its early months as a publicly traded company.

Robinhood remains a high-conviction play that I will continue to track. But I will need to see a reset and some consolidation before I consider increasing my position again. I always want to be involved in companies that I believe have a better-than-average chance of becoming future market leaders. But I want to do this tactically.

If you missed the HOOD rally this year and are enamoured with the company’s deeper dive into crypto and tokens, you’ll have plenty of shots at this stock at lower prices in the months ahead.

I’ll let you know when it’s ready for its next run… and when Vlad’s supervillain aura is set to propel him to the elite club of great CEOs that have become household names.