Transcendence is indeed possible - but it doesn't make as much noise as emotions like happy and sad.
In the long run, happy and sad evens out. Laugh now, cry later, or cry now, laugh later - it's the same. As one of my favorite poets wrote: 'Excess of sorrow laughs - excess of joy weeps'.
Sorrow is only bad if you insist on happiness being good. By calling happiness good, you chain your joy, your good to certain tangible things - that, which happiness makes you feel - and sorrow naturally emerges when these things come to an end. It's an addiction.
When we give up on emotions like happy and sad, then joy is set free. It is just something that is there. When we see this clearly, we can follow it around. Suddenly joy appears in the strangest of places - places you wouldn't even consider, back when your mind was preoccupied with the happy-sad-duality.
Happiness: Joy chained to an object, or a certain combination of things.
Bliss: Joy without object, but as something living, breathing, being. Spirit.