Look at this algorithm:
VAR SMOOTHNESS=10,TX2,TY2
'Then add this right after the TOUCH OUT TM,TX,TY command:
TX2=(SMOOTHNESS*TX2+TX)/(SMOOTHNESS+1)
TY2=(SMOOTHNESS*TY2+TY)/(SMOOTHNESS+1)
'Then draw the graphics at (TX2,TY2) instead, its a nice fun little algorithm, I use it all the time to make smooth moving graphics