I don't agree. I think both references were to Palin. I think it is clear that the "Fish" referenced there is Sarah Baracuda. I don't recall anyone referencing McCain as any kind of "fish". The lipstick and fish references were both directed at Palin.
The crowd didn't get the second reference. I don't think many people did. I think he probably meant to say that you can wrap an "old Baracuda" in paper, but he forgot what fish Sarah Palin was nicknamed after. Without a teleprompter Obama is a bumbling fool.
That's my humble opinion.