Our new friend

Let me introduce you to our new friend, Giggles the Elf. He arrived here in the middle of the last night and brought a notebook and a pen to write down his observations of Katelyn and Chloe. Katelyn did not see him when she first woke up. When she went back to her room about 10 minutes after waking up, she came running out to me, very excited, and whispered,"There's a red elf in my room. He's sitting on my barbie house!!" I went back to her room then to check introduce myself and Chloe. Katelyn, very nervously, told him her name is 'Katelyn'. Poor girl was wringing her hands even, she was so anxious.
I reminded her of the 2 rules: Do not touch the elf. And he must be named very quickly upon arriving. She immediately said, "How about Giggles?" I couldn't think of a better name for new friend.
Throughout the day, I heard Katelyn talking to Giggles about who knows what. And when a friend of Bob's came, she told him all about Giggles. And when my mom came, again, the first thing she talked about was Giggles.
Giggles has been a wonderful motivator for good behavior so far. She gets very upset if you mention her behavior going on the bad list.
When Bob and I got home from our belated anniversary date, the first thing Katelyn told us was that Giggles fell, but that he's okay and she did not touch him.
I wonder where Giggles will be tomorrow morning when we wake up...