1. Begin with a new file, 400×400 with any foreground and background you want. Then type in your text, when you have done that right click the layer and chose Duplicate Layer, then go to Edit>Transform>Flip Vertical.

2. Now should you have 2 text layers and one is upside down, select the upside down layer and go to Layer>Rasterize>Type

3. Then chose the Rectangular Marquee Tool (M) and do as the image shows.

4. Go to Select>Feather with 8 pixels, then press delete one time.

5. Change that layers Opacity to 50%. Now should it look like the image below shows.

6. Take Elliptical Marquee Tool and draw a circle as the image below shows.

7. Create a new layer in the layers palette, in the new layer right click inside the circle and chose fill>Color #000000 (Black). Then go to Filter>Blur>Gaussian Blur 2. Now move the black layer below the two text layers and change the Opacity to 30%.

And you are done!

This is what i came up with.

Below you have some examples with different background colors.