Teddy is most definately a perfect example of a herding dog. My mom's fiancee has a Sheltie, she has showed some of this behavior, but not a lot. I know plenty of people who have herding or stock dogs (for I live in Tennessee, there are a LOT here), including my own Australian shepherd and my grandpa's Australian cattledogs, and you will notice a lot when you are walking that Teddy will often start to circle you, or may act agressive but his instinct is acting up.