The machinations of "Google Dance"

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I know that even IM veterans don't know exactly how Google works, but I wanted to share what I'm going through right now to see if it matches any of your experiences.

After I did some intial SEO on my site, it ended up at #22 under one of the keywords that I'm targeting when Google cached it on January 20th. Ten days and some more SEO later, Google cached it for January 25th and the site dropped to around #200. Then only two or three days after that it cached the site again for February 1st, at which time the site was still around #200.

Then yesterday I found that Google cached the site yet again, this time for February 2nd. This time the site was back in the #20s where it was prior to the Jan 25th cache.

So as far as you all know, does an updating of the sites ranking take place everytime that Google caches the site?(keeping in mind that it's a newer site)

And as far the Google Dance/ranking update process; so far I've gone from the 20s to around 200, and now back to the 20s. Given the additional SEO that I've done since it was first in the 20s, can I expect it to move up further in the rankings, or does the dance simply result in you ending up back where you started?
#google dance #machinations

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