The sequence in question can be found in the "Put Your Money Where Your Mouth Is" section. Danny, Lolo, Raul, Chico, Uno, and several other characters from the neighborhood are all at the fair, and they try taking a shot at the pitching booth that uses a radar gun to track each pitch's speed.
Raul is first to pitch, and all three of his pitches are in the mid fifty mile per hour range. Uno and Chico both give Raul a hard time about the lack of velocity, and Raul challenges them to do better. Lolo increases the challenge by betting that Chico could do better. Chico does do better, but only by 2 miles per hour. Uno then steps to the fake mound and easily beats their pitching speeds.
Lolo is then pushed into the competition, and his first pitch is 54 miles per hour. His response is to...
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give the middle finger to the speed gun. His next pitch is only 55 miles per hour, and Lolo accuses the carney of rigging the game and wants his money back. The carney isn't going to allow that. Lolo then angrily shouts some insults and curses at the carney. The carney tells Lolo to get out of there, and Lolo then says he'll come back with a gun. By this point, Uno and Chico are holding Lolo back:
Lolo surges forward, but Uno wraps him up. “I come back with a gun! Then what!”
Lolo's response is an overreaction to the situation. He is threatening gun violence against a carnival employee who is only handing him baseballs and operating the same speed gun that clocked the other pitches. On top of that is the fact that Lolo only spent $2 to participate in the game. The only thing that Lolo really has on the line is his reputation as a tough guy. He believes that the slow pitch speed somehow calls that into question, so his response to once again establish himself as tough is to threaten the carney with drastic violence.