You may be interested in MagnetoHydroDynamics. This technology combines passing electricity through salt water in proximity to specifically oriented permanent magnets to provide some control of water flow. See wiki:
http://en.wikipedia.org/wiki/Magnetohydrodynamic_drive
You may also be interested in a NASA engineered fluid called Ferrofluid which is basically a liquid that has millions and millions of bits of iron oxide (usually magnetite) about 10 nanometers in size. When a magnet is moved by it, the fluid conforms to the magnetic field lines of the magnet it is near. The iron particulates are coated with a surfactant or 'soap' and suspended in some kind of oil called a carrier. Check out a bunch of YouTube videos below.
(these are called ferrofluid display cells and cost about 25$)
You can make some cheap ferrofluid by looking up 'make ferrofluid' on instructables.com*see link below. The medium to high quality stuff costs about 35$ for 60ml. [It’s really expensive] Making some high quality ferrofluid isn’t too difficult; I’m actually in the process of making some myself. However, it requires kerosene, oleic acid, magnetite (black laser printer toner), and ammonia. You will need a decent magnet (preferably rare Earth neodymium magnets) to see the effects nicely.
Layman’s term for ferrofluid is sometimes 'magnetic liquid' (although that’s not accurate, ferrofluid not made of little magnets).
Ferrofluid synthesis instructions:
http://chemistry.about.com/od/demonstrationsexperiments/ss/liquidmagnet.htm
Very low quality ferrofluid (but you get the idea):
http://www.instructables.com/id/Make-your-own-ferrofluid-in-5-minutes/
WARNING! Remember to wear your ‘working clothes’ and handle ferrofluid in the back yard, because ferrofluid will permanently stain all clothing and most materials it touches. And DON’T drink it! Hopefully that’s obvious. Ferrofluid ‘sticks’ because the little bits of iron lodge into cracks and such on the materials it touches. Glass (or polished glass) is safe with ferrofluid as long as it’s not left on too long (hours to days...). Some ferrofluids contain kerosene, so don’t go sniffing it all the time; or leave it out for long periods of time or some of the fluid will evaporate (and make your mom mad because of the smell).
Follow all directions and safety instructions carefully.
Ferrofluid makes a really cool science project, and can be incredibly fascinating and educational when handled properly. The display cell link above is the best demonstration of ferrofluid for mad scientists and teachers.
