Having Students trace their sight words in the air with a magic wand is a great way to make practicing sight words fun. You just need to give students a list of sight words (you can also have them on slips of paper) and a magic wand. Below I've included several links to tutorials including a you tube video on how to make your own magic wands. This would be a great project to do over the summer.
For more ideas on how to teach sight words visit my teaching sight words page.