I posted a thread about the micro scratch situation also. It was caused by my OCD and using a microfiber cloth that I also used for my glasses and kept in my pocket.
Since I was wiping down the watch twice daily for the past 7 days, now I have micro scratches all over. They are only visible under direct light. Apparently there was some lint and dust/dirt particles on the cloth itself that scratched the polished Stainless Steel very easily.
DO NOT use a microfiber cloth that has been used for something else, get a brand new one and use it only for the watch and keep it in its packaging when not in use.
I bought a Jewelry Polishing Cloth from a local Jeweler and it works great!
I tried the Mag & Aluminum finish polish from the MacMixing video below:
https://www.youtube.com/watch?v=cqb8LFt4MI0&spfreload=10
But it didn't work for me. It made me nervous using it. It was made to use on cars.
Others have recommended polishing with
Cape Cod Polish which is meant for Jewelery. Apparently they carry it in Ace Hardware and Tru-Value. I will be picking up some later today and will report back the results. Link Below:
http://www.capecodpolish.com/collections/all
It doesn't remove scratches but in a sense waxes the polished stainless steel, making it shine, hiding the micro-scracthes and adding a layer of protection.
A final thing to note, your polished stainless steel Apple Watch
will scratch, it is in the metals nature to scratch, in fact in the watch world, which I was unfamiliar with, it is expected and wanted over time.
So if you have OCD like me, relax and enjoy your watch.