It's nothing occult. It's called Hellstronism, or muscle reading, which is a misnomer because the performer will not only read subtle muscle movements, he will also read nerve impulses at certain points of the performance, as well as gestures and facial expressions.
It's also called contact mind reading, mainly because it's the closest thing to remote viewing (clairvoyance) that one can ever achieve without being mystical. Basically, you just have to TOUCH the subject, and his subconscious will help you "read his mind" by leading you the answer with this subtle gestures and movements.
It is a branch of Mentalism that was recently made popular by the TV show, the Mentalist.
Only recently, I tried learning this type of "magic," as I was also amazed by a street performer in Malate when we chanced upon him late last year. It's quite easy to pick up, but may take some time to master (I'm only trying the muscle reading aspect, though, where I'm blindfolded and will try to call out the card the subject is holding, medyo mahirap pa yung random object na huhulaan).
Medyo madali syang matutunan, because unlike other types of "magic," you don't need fast and agile hands, nor do you need a really spacious suit, lol. You just need your hands... preferably walang kalyo para mas madaling makapagbasa.
And you just need the right materials. There are many established references on the matter. How To Read People Minds by HJ Burlingame was published way back in 1907. Banachek, who is one of the leading mentalists of all time, also published 2 references on the matter... a book called Psychophysiological Thought Reading, and a dvd series called the Psi series. And of course, Contact Mind Reading, by Daniel Fitzkee, which is the one I'm reading, is also a respected reference.
Yun lang nga, mahirap makakuha ng mga materials na to. I tried, but I couldn't find any torrents or download links for them (except for some parts of the PSI series which aren't really related to muscle reading), even if some of the books are already part of the Public Domain, so I had to shell out around $30 to buy Fitzkee's book online. But if you're serious about this craft, it's worth the investment because, quite honestly, for the performer, muscle mind reading is so much easier to learn and so much more fun to implement than other types of magic.
Plus, it can also be a great chick magnet. Chicks love it when their thoughts are being read, and it gives you the chance to actually touch them.