Final answer:
Ponyboy compares himself to Pip from 'Great Expectations', empathizing with Pip's feelings as an outsider and their common desire to rise above social limitations.
Step-by-step explanation:
While Ponyboy is reading the novel Great Expectations, he makes comparisons between his life and the life of Pip, the protagonist of the novel. Both characters come from difficult economic backgrounds and struggle with their sense of identity within their respective social environments. Ponyboy identifies with Pip's feelings of being an outsider and the desire for something beyond the limitations placed on them by society. This comparison highlights the overarching theme of social class and personal development within both contexts.