Can someone explain what is going on here? My bones hurt just watching it.

I'm no Lucha Libre (Mexican wrestling) expert, or even fan, but I have seen a match or two and at least most of those moves looked like they came out of the ring. And hey... the eyelashes and makeup almost qualify as a wrestling mask.  

Maybe the performer had at some point trained as a luchador (even just for fun in high school) and  kept those moves. That would also explain why the crowd seemed to enjoy itself without too much fear

I still don't understand . . . and it's ironic.  

It looks like it's from the The Feast of the Sto. Nino which Filipinos celebrate on January 18 in honor of the Child Jesus.  

But it's a gay beauty contest to name "Miss" Pangkalawakan which I think translates to Miss Space Shuttle. So, how is a gay beauty contest at all connected to a celebration of the Child Jesus . . . Would the Catholic Church approve?  . . . and WTF does any of that have to do with Space Shuttles . . . and don't get me started on those 'dance' moves . . . Hope the singing portion of the talent show was better. ha ha.