One red light represents its nose and the rest appear to be blood draining from Rudolph's body. The display represents a hunting technique called field dressing, which is what hunters do to a deer they kill. Here is a link to video from a local news station in Florida.
I think this guy should be sensitive to kids, but he has the right to do what he wants on his property. I think parents in the neighborhood need to use this as a way to communicate the difference between normal people and Rednecks. It is a great example of this. I figure at least the guy did not hang a non-white person or burn a cross. Maybe that is in his plans for next year.
Trivia for the day: Rudolf the Red-nosed reindeer was actually created as a promotional figure for Montgommery Wards department stores.