What kind of caterpillar has a hairy red middle with black ends?

There are over 70 different species of caterpillars and butterflies, but I strongly believe that the caterpillar you are describing is simply the Monarch Butterfly, one of the most well-known species of butterfly on Earth. The caterpillar of such, is all black with different shades of orange and yellow stripes lining its back and neck. It has two tiny antenna on its black head. See attached page for more information: http://www.monarch-butterfly.com/