The dancing dot goes away with time. You also need to shoot while the dot is dancing so you know what your room for error is vs a super stable refined dot.
Good news is, now that you can see it moving, you can correct it; takes time, but it will work itself out and you'll be much steadier.
My presentation went from being more angular to "up and out".
Things I've found helpful:
-When you grip the pistol in the holster, keep your wrist position firm/locked.
-When you grip the pistol, don't grip it like a baseball bat- engage your middle, ring and pinky finger to drive the front strap of the pistol to the back of your palm- it is harder to move the pistol off axis L/R if you do this- it also mimics how you press a trigger....if you have three fingers doing one thing, your trigger finger will want to do the same- you may or may not notice that you stop pulling your shots to the left too....
-During the presentation, visualize bringing the backplate to your nose- obviously don't touch the two, but just like the finger to nose test....the nose is a good reference point that everyone has unless you like Saigon whores.
-When your reaction hand meets the pistol, keep it flat until they touch, then wrap it- if you hit the tips of your fingers on your shooting hand, it has a tendency to move the pistol off axis. When the hands marry, grip it as you would at full presentation- this stops you from increasing pressure as you present, which again....can really throw off your presentation.
Have someone video tape your presentation in slo-mo. Anyone with an iPhone can help you with this; pay attention to everything. If you're missing the dot high or low, you'll clearly the muzzle raised or lowered; its much easier to fix it once you know what is taking place.
It takes a while, but it helps to have some guidance- once you get used to it....nirvana is achieved.