Up in the clouds

[Nonverbis]

Wordbuilder by Guy Wellman





Could you tell me whether this means "extremely happy" or "not in contact with reality". The Collins dictionary gives the latter
(https://www.collinsdictionary.com/dictionary/english/in-the-clouds).

 

[jutfrank]

The writer of the diary is so happy that he got the girl that he feels like he's up in the clouds. He can barely believe how well things are going. It seems almost too good to be true.