Here's how I made suspended translucent text effect. As for me it looks wonderful.



First create a new document, 1000×500 pixels, black background.



Then select Horizontal Type Tool and write something like 'SUSPENDED.'



In the above image I've used Verdana as my font of choice, which is free and it's sized at a meager 120 pt. Ok, now create a new layer, after that activate the Gradient Tool and a White to Transparent gradient, fill in the work area as on picture below. The gradient should move from top to bottom - Top being the most opaque.



Then create a selection of the layer contents for out text (you can press Ctrl and click the Layer Thumbnail in the Layers Palette to make this selection). Now, go to gradient layer and press Ctrl+J to create a copy of the gradient in the shape of the text.



After that you can delete the text layer because you don't need it more for this tutorial. Using Rectangular Marquee Tool select and cut every letter to the separate layer but only type one letter per layer.
Create a new layer above all your letters. Create a selection of your first letter and fill in that selection with your selected color on the new layer. Set this layers Blending Mode to Screen.
Repeat this process for the remaining letters using different colors for each letter.
For letter 'S' use color of #ff0000;
'U' - #ff7e00;
'S' - #fffc00;
'P' - #a2ff00;
'E' - #06ec00;
'N' - #00d8ff;
'D' - #004eff;
'E' - #7200ff;
'D' - #f000ff.
You'd now have this:



Merge all of your white gradient letters and merge all of your colors into one layer. You should now have two layers - one with the plain gradient letters, the other with the colors for the letters. Then set up opacity to 60% and press Ctrl+J to duplicate each of two text layers. After that apply Filter > Blur > Gaussian Blur with similar settings as on a picture below for each of two layers.



Now you have something like this:



Merge all of text layers into one layer and using Rectangular Marquee Tool select and cut every letter to the separate layer but only type one letter per layer again. It's time to make a rope to hang the letters. Select the Pen Tool; you need to make sure that you're working with Paths instead of Shape Layers. Once you have it mastered make sure the path is joined up with the beginning point, this will be removed when we have stroked the line. Draw out your rope using paths:



You have your path done. Now make a selection from path (Right click on shape form on the Canvas > Make Selection with radius of 0 pixels), create a new layer and go up to the main menu, select Edit > Stroke then select the color of #e5ffff and a stroke width of about 3 pixels.



Press Ctrl+J to duplicate layer, then press Ctrl+F to apply Gaussian Blur Filter.



For the effect suspended in the air rotate (you can rotate the letters by using Edit > Free Transform) and move your letters as on picture below. Put all the letters above the layers with rope.



Ok, looking nice. Now you need to make aperture into the letters to make real effect suspended in the air. Go to lower layer with rope and use Select > Load Selection. After that go to each of layers with letters and cut away parts of letters by using Eraser Tool to receive image as below:



Press Ctrl+D to deselect chosen area and apply Eraser Tool again with similar setting to these:





Ok you are done! And the last one you can play with the background to make it funnier. Go to the layer with background and create a new layer above. Then select a soft paint brush from the tools menu and scatter some different sized spots of your canvas using different bright colors, for example #fe5a00, #ffe100, #7cff00 and #00fff5.



Now select the Eraser Tool and a soft round brush and erase some smaller different sized spots to get a picture as below:



Set the opacity to 27% up.



That is it. Great job!