Watch the Rainbow at Night: 5 online guitar lesson by TrueFire from Acoustic Guitar Greatest Hits Vol. 2
Lesson Source: Richard Gilewitz's Fingerstyle Narratives
Bars 35-39 contains the ‘penguin sound’ segment which is created with a D Major chord shape at frets 5 and 7. Attempt a palm mute with your picking hand for the 4th string bass line for full effect.