HA, cool, try playing along, backing up, pretend like you are afraid, they seem to get more confident and do it more often. Immediately when you see one acting cocky like that, back off and drift away, really, I think it encourages them.
Did you do the mirror trick? I saw it on BBC's Nature (I think) and the host basically uses a mirror to trick the anole into believing its reflection is a rival male, to which it does its display. Pretty funny