I recently bought some j cloth yarn, this is essentially j cloths cut into strips. I played with this and made a crochet hooks holder with it. The yarn is wonderful to work with it is available from uppingham yarns.com. They specialize in unusual yarns at very reasonable prices.
Row 1; Chain 10 and dc into end,turn .Row 2; 1ch, dc to end. Repeat row 2 until desired length is achieved to make a front and back of stitch marker. To make a flap ;dc2tog then dc to end ,turn.Row 2; dc2tog then dc to end. To finish ; dc the side seams together, sew a glass bead to the flap just to add weight to the flap