They should be watching your mouth only if they need to read lips!

Normally, they will be looking you in the eyes and, ultimately, the simplest form of misdirection is that the audience will look where you look. However, misdirection comes in many, many forms.
Before I go on, let me just say that you shouldn't be looking at your hands, just as a dancer should not watch their own feet. Doc Eason is fond of saying, "You should be directing your own attention up and out, rather than down and in." If you are watching your own hands, then you are looking down and in. If, however, you are looking up and out, then the magic isn't about what is in your hands, but it is about the audience members themselves. Another Doc quote, "They won't remember what you did, they will remember
how you made them feel."
So, using those thoughts, we come upon another piece of misdirection, which Tommy Wonder calls "The Ricochet." Sometimes, you'll have somebody that is burning your hands. They simply will not look away. Now, if you speak directly to them and get them to look up, then you have blatant misdirection. You quickly make your move and by the time they look back, your move is done. The problem here is that they KNOW they've been misdirected, and this is to be avoided. You see, for proper misdirection to occur, the spectator must feel that they are looking where
they want to be looking and not where
you want them to be looking.
To master the ricochet, you need to know the names of the folks who you are performing to first. By using their names, you are using natural misdirection, because it is only natural to not only look at someone talking to you, but to immediately respond to the use of your name. Another important part of the ricochet is the very human reflex to look at someone who's talking. So, to get that guy off of your hands in a natural way without using blatant misdirection is to direct a question, or statement that begs an answer, to another person in the group of spectators.
For example, Bill won't stop looking at your hands. So, you look at Mary and say, "Mary, have you ever seen anything like this before, in your life?" Mary will immediately answer the question and, if you've done this right, Bill will look at Mary as soon as you address the question to her (by using her name) and continue to pay attention to her until she fully answers the question. You've ricoched the misdirection aimed at Bill off of Mary. Bill will have no idea of the subtle misdirection that you've hit him with especially if you keep your entire attention on Mary yourself.
Misdirection is a study all of itself.
Mike.