What is magical in my life...
The amazing colors in the sky during sunrise and sunset.
The fact that my kids called to say they loved me today.
That I have a hubby who doesn't care that I haven't shaved my legs in a week. Okay, maybe he cares a little but it's endearing when he teases me. LOL I think you're right - magic is imagination and positivity. i think it also springs from hope too.
This is absolutely ALL magical. Happy dance!