BMW Repair: Transmission, visible problem, transmission cable

Question
MY MECHANIC CHECKED THE TRANSMISSION CABLE IT WAS FINE.HE PULLED THE TRANSMISSION DIPSTICK AND IT HAD A FUNNY SMELL.HE THINK'S THE TRANSMISSION IS BAD DO THINK THAT'S THE PROBLEM THE CHECK ENGINE LIGHT'S NOT ON.THE CAR HAD NO SIGN OF A BAD TRANSMISSION.THE GEAR'S DIDN'T SLIP WHEN DRIVING.THE CAR RAN VERY SMOOTH.
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Followup To

Question -
1989 740il wbabc4310kdc23555 my car will shift won't move in drive will move in park and reverse.

Answer -
It sounds like the transmission cable has broken.You'll have to get under the car to check it out though.From below you can see if it is broken while moving the shifter.

Answer
Well its good that there is a dipstick for checking the transmission.(some had none).Being able to check it, I would then change the fluid and filter and go from there.Being able to remove the pan and inspect the transmission you might find a visible problem.