It has invisible gnomes chained to it that hate tinsel, so they blow it away when its near them.
The other answers are true . The wand generates a negative charge and the tinsels have the same field charge so they push away from each other. I am 12 so I don't realy know how to water trick works.
The way it probably works is that the "wand" has an electromagnet in it, and it generates a magnetic field which causes the "tinsel" toy to ionize the air around it and it moves it around. So when you take the "wand" away the tinsel looses the charge, which stops the ionization, which causes the tinsel toy to fall. The same happens when you cut power to the electromagnet. A similar device is out there which causes it to float on its own.
Assuming the previous answer is from a drone who works for the company, and also assuming you wanted a description of how it works as opposed to an advertisement for the toy/the poor description of it being called "weird science" I will attempt to answer. Static Electricity.
The Wanderama is “weird science” that is similar to the charge you feel when your hair stands on end. Using similar energy, the Wanderama is able to manipulate the direction of the tinsel toys without touching them. A Wanderama kit includes two Wanderamas, 24 tinsel toys, two sticker sheets and an instruction guide, they say. The Wanderama is not just interactive but physically demanding and permits a child to imagine the game or story that he is enacting with the use of his or her Wanderama. It is healthy, stimulates the mind, and is interactive too.