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However, yesterday and today I noticed the site being #7 when I first checked its position. When I try checking it afterwards, is continuously shows up #10! This is after clearing my cache, etc. It keeps showing up #10.
Today, I curiously checked it again, and... first search it was #7. After that, it kept showing up #10 again!
Does anyone have any idea on what's going on?
There are probably a couple of sites in front of you suffering from the "vanishing index page" phenomenon. When you refresh, these sites show up where they belong, pushing your site down the SERPs. You can read about this current problem with Google in the following thread:
[webmasterworld.com...]
Note: At this time, you are better off than they are since users normally do not repeat their searches...