Well, that theory of dogs feeding off the energy of the pack leader & others in the pack far predated Cesar or any other single dog handler - has been known for centuries, as you can tell from talking to old-timer dog handlers who learned from their grandfathers, father, mom's, etc., who said they learned it from their elders and so on. Plus, reading old books shows you anyone who spends much time around bunches of dogs soon figures out most of what they are all about and what triggers which actions/reactions. Cesar has nothing original in dog handling, he just televises his ideas and ways, some of which may be harmful to some dogs' psyches.
I always let my dogs work out hierarchical pack issues unless one is hurting the other or actually oppressing another dog.
The reason your girls probably act up more when you are all in the same room is they are vying for top dog status for you and your husband's attentions, in competition with the other and tensing up as the situation intensifies.
Your cue to step up and stop the situation is the first moment you sense bad energy or the possibility of some mental processes going on in one or more of your dogs. They are so easy to read it is silly. At first, you can't move before the fact - but you can get up and stop the fight once it begins, separate the dogs from one another as you give them the "leave it" or "back off" command, stand them down, back them off and stand there until they do soften, turn away and leave the area and you do, too.
From then on, your closely monitoring them will alert you the moment one of them begins to give a sign trouble is brewing. Not every fight is telegraphed by a sudden look at the other dog, the flicker of an ear, tightened lips, tail hike, posturing, intent eyes, still body, but most are. Just getting too close can be an affront to another dog. If you are into dog body language and interactions, you read their actions like a book and that's your cue to stop the dog's mental process of "dominate" or "attack" by your sudden glare at them, pointing, telling her to "leave it"(which your dog has already been trained to do every time as you've been teaching them obedience - no questions asked) as you get up to enforce the behavior you want. And your dog soon knows why you are getting up from your chair!
You are not without all kinds of ability to know what is about to happen with feuding dogs most of the time and only occasionally will one dog suddenly attack another without giving off some sort of body signal or too quiet, stealthy energy. That's the moment you interfere, back them down and redirect their interest to something else. The other dog will recognize you just kept her safe - you did. She'll come to respect you for that. So will the admonished one.
Believe me, if you keep at it - catching them in the act of becoming too sentient to the other dog and stop it there, they will begin - over several times of it happening - that you are always on the job when they are out together in the same area with you and that you are not going to allow the attacker to make the rules for the other pack members - you are. They will begin to sense they have a strong, firm pack member who is there to set rules, protect even the weaker members and eventually your little aggressor will give in to your will - if you are consistent, persistent and don't think you can't do it.
Be supremely confident and tell yourself you are smarter and quicker-witted than your dog and know what's best for her and can ALWAYS out-think her and what she's about to do. You did it just last night when you called her off "strutting"! You can make most dogs do just about anything you want of them if you put enough confidence, study, determination, love, gentleness and persistence into it, never letting even one slip up get by you during the re-training process. But you always have to be more determined than they are - and they have to know that - to succeed with changing a dog's willful, instinctive ways.
As a training session to show your little willful fighters they are under your control, have them sit/stay on couches or chairs or in the living room for increasing periods of time - up to five minutes. Make a fun game of it, keep if happy and make them want to play the game for the great rewards. Then, once they have that down pat, make them stay off in the bedroom for a short period of time after you walk out and leave them until a full 60 seconds are up. If someone breaks out, put her back in the sit/stay position, leave the room and count off your time limit until both can achieve it together. Keep these training sessions quick, short, frequent at first until they can both stay for 10 seconds, then 15, etc.
Celebration praise, happy smiles, "good girl", generous treat rewards and good, positive feedback when they do what you asked and stay put will then show them that controlling their impulses and doing what you ask of them, though it may be hard on them for a while, is well worth it in the end when you party together with them after the "release" command is given and show your genuine pride in their accomplishment of understanding your communication and self-control. Pack leaders in the wild do these kinds of thing to reinforce their leadership roles and the pack complies, knowing they must stay put until the leader releases them and are under control of a strong, firm, smart leader who will always keep them each safe as long as they follow directions.
Little training exercises like this will teach your dogs that you set the rules, you teach them what you expect and want, are fun, generous in your pride and praise when they do it and by this process, they learn that obeying your words and commands brings them their best life. Once a dog gets that lesson, he'll give you few problems from then on and is always eager to find ways to do what you want to make you prouder and prouder of him.
