Last week, we featured a note inviting you to a one-of-a-kind event featuring our colleague Jim Pearce.

In short, we told you that Jim has found a whole host of what he calls “zombie” stocks that are due for a major fall… and that he has a plan to profit from them.

Many of you signed up for Jim’s new presentation, which aired on Tuesday. If you were one of them, then you know his latest trading system makes money from these bloated companies. And it’s surprisingly simple…

Jim is a veteran trader with decades of profitable trades under his belt, and he’s made a career out of pinpointing overvalued stocks and harvesting a windfall from their day of reckoning.

And today, I want to give you an opportunity to hear from the man himself…

First of all Jim, it’s great talking with you again. Congrats on the event, it’s been a huge success. It seems like this one really struck a nerve…

Thanks, Brad. As you know, I worked on this project with our publisher for more than a year, waiting for the right time to make my move.

And you’re right, this one seemed to really resonate with our readers. I think that’s because the timing could not be better for what we will be doing. The stock market is at an all-time high at the same time the economy is weaker than it has been in decades.

That’s bad news for investors holding grossly overvalued momentum stocks, but it’s great news for those of us that know how to profit from their inevitable collapse.

Let’s get into that. You say this market has gotten out of hand… Can you give us a brief rundown on some of the metrics you’re watching?

Look, by any conventional measure, the stock market is overvalued. The S&P 500 is currently priced at roughly 25 times forward earnings, a 60% premium to its 10-year average multiple of 15.

At the start of this month, the “Buffett Indicator” reached its highest level since the dot-com bubble 20 years ago. (The Buffett Indicator compares the value of the U.S. stock market to the nation’s economic output as measured by gross domestic product.)

Another one I’m watching is the Consumer Confidence Index (CCI). The CCI fell in July and August to its lowest level in five months. In September, the S&P 500 Index dropped 10% as tech stocks quickly lost momentum. Now, it’s gained again recently – but what happens when the winter comes and if Covid-19 rears its ugly head again (which may already be happening)?

I get what you’re saying. Yet it seems like the market just keeps marching higher. This seems like classic bubble behavior.

That’s right. These days, no matter how bad the news, investors keep plowing more money into stocks. That may not necessarily be a reflection of how confident they feel about the economy. They may feel they have no choice.

A few months ago, I noted a surge in new retail accounts opened at online broker E*TRADE in March. That timing coincides with when the stock market bottomed out. Presumably, a lot of laid-off workers turned to day trading stocks to make ends meet.

Another troubling sign is what’s going on with Robinhood, the popular online broker used by younger. Back in June, it disclosed that the five most popular stocks with its users were Ford, General Electric, American Airlines, Walt Disney, and Delta Air Lines.

That list reeks of desperation. It might have been a solid portfolio 40 years ago. Now, all of those companies are taking a beating due to the pandemic.

As I stated then: “I can’t help but wonder how much patience these new shareholders will have if the stock market goes through another V-shaped correction. Will they hang in there if a second wave of COVID-19 later this year once again shuts down the economy, or will they bail out?”

I think those shareholders are going to bail out, and soon. A second wave of COVID-19 this winter could send all five of those stocks into a tailspin.

And here’s the thing… there’s even worse stocks out there. Professional traders call them “zombies” – and that’s what my new trading tutorial is all about.

Your latest presentation goes into great detail on how you’ve profited from situations like this in the past. Can you shed a little light on you plan to do this?

Most investors think of the stock market only as a way to make money when it is going up and lose money when it is going down. Nothing could be further from the truth. You can make just as much money when a stock is falling as when it is going up. In fact, oftentimes you can make more money when a stock is falling since shareholders tend to panic and sell out at any price.

That’s where my new service, Mayhem Trader, comes in. The type of trades we will be executing at Mayhem Trader will be quite different from the stock and mutual fund analysis we provide in my other service, Personal Finance.

My goal is to win big– from losing, half-dead stocks that are surprisingly easy to spot.

Another thing worth noting is that I won’t be trying to read the tea leaves of Fed policy or parse the latest tweets from politicians for insight into how they may behave. All I will be doing is scouring the market for overvalued stocks that appear ripe for a big drop that we can profit from.

And despite its name, there is nothing random or chaotic about how I will be managing Mayhem Trader. In fact, just the opposite is the case. I will be using a multi-variable screening tool to identify overvalued companies, along with a sophisticated timing algorithm to determine when to open and close our trades.

Although the tools I will be using are complicated, you don’t need to be an expert to use this service. In every alert, I’ll tell you exactly what to do and how to do it.

I expect to issue 3 – 6 trade alerts every month, depending on the opportunities in the market.

That’s all the time we have today, but I want to thank Jim for joining us and letting us in on some of the secrets of his system. If Jim’s track record is any guide, he and his subscribers are due for some big paydays.

I should also note that the video for Jim’s trading tutorial is still up… but it won’t be for long.

What’s more, new Mayhem Trader subscribers have already received their first set of trades. And Jim is about to execute his next two trades.

Go here to view the presentation and learn how to get these trades before it’s too late.