I stepped out of my front door (which faces south) at around 3:45am Saturday August 11, 2012 to have a cigarette. I immediately saw a very large, starlike object to the east just hovering. At first I thought it was Venus but quickly realized it was way too large and bright–my thumb at arms length didn’t block it from my sight and it was about twice as bright as I have ever seen Venus.
I stepped down off of my steps and realized that the moon, which was at waning gibbous and still quite bright, was only a short distance from the moon. I held out my hand at arms length and it was about the distance from my thumb to little finger tip with my fingers spread as far as I could. If it was that bright that close to the moon then I think it may have been bright enough to see in the daytime.
As I watched, it suddenly shrank it size/brightness until it was a small dot, about as bright as one of the dimmer stars in the sky (a little dipper star maybe). I could barely believe my own eyes.
Then a small cloud moved in front of the object and when the cloud moved on the object was gone. I watched for a little while longer but it didn’t come back.