What indeed? While she was walking through the forest, she saw a wolf strolling slowly towards her, humming something to himself. A minute or so earlier, the wolf had been watching her from behind a tree, and had thought to himself, 'She'd make a nice juicy meal'. But as he didn't want to frighten her off he had decided to play it nice and cool, and so the nonchalant walk.
does it mean that a minute or so earlier he had finished watching her from a tree or does it mean he was still watching her from a tree as past perfect continuous is used I think he had finished