Tutorial: DIY Tissue Paper Pom-Poms this tutorial is pretty good. Use square sheets or tissue for a rounder Pom Pom. Tie the middle with ribbon and tied several on ribbon and hung them for a backdrop. Use thin tissue paper and fluff gently.
If I had a pool I would totally try this out. Put a glow stick in a balloon for pool lanterns. Pool party on a Summer night! I think this could work pinned up on the fence of a backyard without a pool, too, so really great idea for any outdoor BBQ/party!