Looked like a Fourth Of July sparkler--like a colored pinwheel.About 11pm I walked outside for a smoke. House faces the Rio Grande river and I saw lights that went up and down behind the mountain to the east. At first it looked like a series of white tubes or tiny flourescent lights. Woke my wife for her to have a look and she said get the camera. I got the digital camera but I could not see the lights in it. I asked my wife to come outside and verify what I was seeing. She did and it was still there. Then I got binoculars and went out on the dock for a look. I could see an array of colors which resembled a 4th of July sparkler. The UFO was surrounded in a cloud or mist. Very different from a star and the sky was cloudless. Getting cold, I went back inside and moved a chair to the window and kept watching for at least 45 minutes, going outside twice for a better look and observing another UFO, not quite as bright to the north. Initially I saw this one with the other when I took pictures. I kept watching to see what would happen and kept the binoculars as steady as possible observing that I had to adjust when the craft moved up or to the side which it did quite often. Many colors were visible including blue, red, green, yellow and white. It would move further away from me toward the east then come back and then white lights became more visible within this cloud or mist in which it was travelling. The other craft was similar but smaller and was not as dominant so I paid less attention to it. The land across the Rio Grande is private and there is a road where I sometimes see a car but this UFO was above the mountains. It was larger than any star, much different and had colored lights appearing to me to be circular. Also at times it displayed very erratic movement, zig-zagging across the sky. I kept expecting it to disappear or move off at the speed of light but it did not and the display became quite monotonous.