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I assume chrishirst has said it’s normal because of the Google Dance.
The Google dance occurs of average every 4 – 6 weeks, but I have never seen rankings fluctuate by such a high number, especially if you’re supposed to be ranked number 1 for a specific keyword/phrase.
Just an idea, but when you were ranked number 1, are you sure you wasn’t signed into Google with personalization mode on? Google does this by default, and will show the most visited site for that keyword/phrase.
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