Someone Explain this to me plz!!

Hello, This evening while sitting around with a friend we started to play around with a 52 deck of cards... he decided to perform some 'Magic' tricks on me. Well i don't know what he did but it really amazed me... someone tell me how he would have pulled this off..... he got me to spread the cards all over the table, then he told me 2 cards i was gonna pull out... and he said a card he was gonna pull out... well, i pulled the 2 cards out he said i was going to, and he did the same with his card.. everycard i pulled out, which was around 10 cards... he said what card it was before i flipped them... and this trick was even harder to believe....... he got me to cut the deck, i cut an 8 of diamonds... put it back in the deck, shuffled the cards and gace the deck to him... he spelled my initials with the cards... and the last card to come out to complete my intials was an 8 of diamonds... it was crazy, i watched him closly, there was no way he could have pranked the trick... whats going on here???