At 0550 on 23 August 2011, I observed a light in the ESE sky, approximatly 25 degrees above the horizon. At the time the moon was in a cresent in the East, and Orion was in the ESE sky at approximatly 45 degrees from the horizon.The light was in line with the stars of Orions belt. The light pulsated, and change colors to blue and violet. The light was a far distance away and appeared to be upper atmosphere or beyond. The light moved in erratic but repeating patterns, including 90 degree turns at speed, mountain/valley jigs, and circles.As the morning progressed and the moon/stars moved westerly in the sky, light maintained position 25 degrees above horizon. ISS was still below horizon at time of event. Sirius was only high magnitude star in the vicinity. Light remained visible well into the sunrise, unable to see it only after full sun above horizon.During this event a commuter flight from the local airport flew past me from North and coninued South (to DFW). It is possible to see satelites passing in orbit from my home. During Winter months the ISS is visible in the southern sky at my location. This was neither satelite nor ISS.I am a Fire Inspector (23 years of fire service), veteran (10 years) of the US Air Force. I have never seen a teresterial aircraft move in this fashion.