I'd guess that your transmission is overfilled -- there's a overfill relief through which excess fluid squirts out (and smokes as it drips on hot parts).

The only proper way to check the transmission fluid level is with a means of checking the fluid's temperature. I wrote an article* published in Rolling a while back and reported how you really can't rely on "just driving around" to reach any given fluid temperature -- just guessing, you can be as much as one pint off, which can be the difference between a good level and overfilled. For example, in New Jersey in the winter, your fluid temperature will never get over 75C no matter how long or fast you drive.
["Accurately Measuring ATF levels", Rolling, July/August 2006, pg 29.]

In the article, I also wrote how to establish your correct fluid level using an IR thermometer (e.g., RayTek) to read the transmission sump's temperature (just reach underneath and aim the hand-held thermometer, set on Celsius to avoid calculations). Then, compare the fluid's actual temperature to the two scales, 40 and 90 C, on the dipstick. Interpolate where the max and min lines would be at your fluid's temperature, compared to the lines drawn at 40 and 90 C. That's all there is to it -- very easy (you just need the thermometer).