In The Outsiders, when Ponyboy says Dally is "smart," what might he mean?

I think the description of Dally that we are given in the
first chapter is worthy of some serious attention as it presents us with a very complete
description of the individual. Let us examine the part you are referring
to:

He had
quite a reputation. They have a file on him down at the police station. He had been
arrested, he got drunk, he rode in rodeos, lied, cheated, stole, rolled drunks, jumped
small kids--he did everything. I didn't like him, but he was smart and you had to
respect him.

Thus we can see
that the adjective "smart" that Ponyboy applies to Dally is probably not linked to
intelligence in the traditional sense of the word. Rather, it seems that Ponyboy is
using "smart" in the sense of "street-wise." Dally with all of his "experience" of the
world and the law is clearly someone who knows about how to manage situations such as
the one facing Johnny and Ponyboy. It is interesting that it is Dally who is able to
help them out with what to do and where to go and gives them advice. He is obviously no
stranger to such events.