My name is Ben Nemzer and I'm a magician. One of my specialties is close up magic, which is magic with ordinary objects, decks of cards, ropes, rubber bands and I do that all over New York City. I'm going to teach you some of the basics of magic that you guys can start performing right away.
This is how you make a pencil float. You just squeeze your wrist, and if you squeeze it tight enough, you should be able to open your hand and it'll float. Now here's the secret, you're using your pointer finger when nobody's looking. Here's the backstage view, you say you're going to hold the pencil here and if you squeeze your wrist tightly enough it should float, but what you actually do is, when you grab your wrist, you put your pointer finger out and that way when you open your hand it looks like it's just floating, but only from this side.
For an extra bonus illusion you can move your finger back and forth just a little bit, that way when it's here you see it floating and then you let go and catch it. And that's how you make a pencil float.