It happens right in front of the spectator's eyes but I misdirect their attention away from the cigarette.

People often experience the ball moving up in the air even though there is no ball present. They claim to see a ball moving but obviously it's not there so it must be in their mind.

Our visual representation of the world is much more impoverished than we would assume. People can be looking at something without being aware of it. Perception doesn't just involve looking at an object but attending to it.