Welcome to 2CarPros.
The smoke is most likely the oil getting hot on the engine. And although oil has a very high flash point, it can catch fire. When you open the hood, check to see if the valve cover gasket is leaking. The oil can make its way down the engine and to the bottom. Since you see smoke, I have a feeling it is leaking from the valve cover and on to the exhaust manifold and then down to the bottom of the engine.
The black "goo" sounds like really dirty motor oil.
I have attached 3 pics. The first is an exploded view of the engine and the second shows the cylinder head cover (which is the valve cover). The third pic is a blown up view of the valve cover and gasket. The gasket is where it can leak. Locate that cover on the engine and see if it is wet with oil where it mounts on to the cylinder head.
Also, transmission fluid is red. You mentioned it was leaking, so check to make sure the fluid isn't low in the transmission.
Let me know what you find or if you have other questions.
Take care,
Joe
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Saturday, March 23rd, 2019 AT 6:23 PM