Try touching the cat and see what happens. This action is motivated by movement on the sprite. Try holding still and then moving and see what happens to Giga, whether you are touching Giga or not. This change is motivated by movement on the stage. Make sure most of you isn't touching the balloon and then try battling the balloon back and forth between your hands. This motion is based on the direction of the motion on the sprite. Change the values and see what happens. What will you create?
You'll need to enable your camera for Scratch, but don't worry, nothing is being recorded.