Damon wasn't sure what was happening either but he knew that right now he wanted both of them also. He loved Elena, and he hoped that he was enough for her, and part of him really worried that he wasn't. That she'd figure out soon enough that he was nothing but a disappointment like everyone else had. He seemed like he was smug and arrogant on the outside but it was a facade.
He let out a grunt as Elena started to rub him through his pants and he started to harden. He did the same to her, rubbing her through her pants. He wanted so more contact with Enigma but she seemed more interested in Elena than him right now.