How to use the keyboard to drag and drop?
Daniel Lawson provides a really useful and widely applicable solution in a comment above. It deserves its own "answer".


  Can you three-finger-drag for drag and drop? What hardware do you
  have? What version of the operating system? –  Daniel Lawson♦ Oct 3
  '12 at 17:35


I just used three-finger drag to select that text and then used the Cmd-C and Cmd-V for copying and pasting. That's all you're likely to need except in situations where an app requires you to move a switch or drag a visual object.