I think it's a smocking stitch, but I've always used it for darning/patching. I've never smocked anything. I believe the red stitches are stretch stitches, and to use them you would turn your(stitch length)dial so the red spot is straight up at the "bump". Be sure you are using a zig-zag/general purpose plate. Then just start practicing on scrap fabric until you get the hang of it and figure out what you can use the stitches for. It's strange the manual doesn't address the different stitches.

I also found this just now...

Here is a link that might be useful: Singer Stitches

Thank you noinwi, got it now, it works perfect! The red dot was it!! and thanks also for the link, it's great to have on hand!